P.R. Laws tit. 10, § 1578
Factors cannot transact business for their own account, nor interest themselves in their own name or in that of another person, in negotiations of the same character as those they are engaged in for their principals, unless the latter expressly authorized them so to do.
Should they negotiate without this authorization, the profits of the negotiation shall be for the principal and the losses for the account of the factor.
If the principal has granted the factor authorization to transact business for his own account or together with other persons, the former shall not be entitled to the profits, nor shall he participate in the losses which may be suffered.
If the principal has interested the factor in any transaction in the absence of an agreement to the contrary the participation of the latter in the profits shall be in proportion to the capital he may have contributed; and should he not have contributed any capital, he shall be considered a working partner.
History —Commerce Code, 1932, § 206.