Factor Legal Meaning and Definition

Here is a simplified definition of the legal term Factor.

Factor (noun)

  1. A person who conducts business transactions, mainly sales, on behalf of others in exchange for a commission or fee. This individual typically doesn't reveal the identity of the principal involved in the transaction.
  2. An element or circumstance that contributes to or influences the outcome of a situation or event. It is considered a significant part of the cause or result.