A del credere agent is an agent that ensures the person they contract with on behalf of their principal will pay for the goods or services received, and they receive a higher commission for this service. While they are not legally obligated to be able to make contracts themselves, they must be capable of fulfiling their duties.
A del credere agent is an agent who guarantees the solvency of a third party with whom they make a contract on behalf of the principal. The agent takes possession of the principal’s goods and ensures that anyone who buys the goods on credit will promptly pay for them. In exchange for this guarantee, the agent receives a higher commission for their sales. This guarantee is generally not subject to the statute of frauds. For example, a company may hire a del credere agent to sell their products to retailers. The agent guarantees that the retailers will pay for the products on time, even if they sell them on credit to their customers. If a retailer fails to pay, the del credere agent is responsible for the payment. In return for this guarantee, the agent receives a higher commission for their sales. In summary, a del credere agent acts as a guarantor for the principal, ensuring that the third party fulfils their obligations. This type of agent is commonly used in the sale of goods on credit, where there is a risk of non-payment. The del credere agent takes on this risk in exchange for a higher commission, benefiting both the principal and the agent.
A Del Credere Agent is a type of agent who guarantees the payment of goods or services sold by their principal to a third party. They act as a surety, assuming the risk of non-payment by the buyer.
The primary responsibility of a Del Credere Agent is to ensure the payment of goods or services sold by their principal. They are obligated to pay the principal in case the buyer fails to make the payment.
No, a Del Credere Agent is only liable for the specific goods or services sold by their principal. They are not responsible for any other debts or obligations of the buyer.
Yes, a Del Credere Agent can charge a fee for assuming the risk of non-payment. The fee is usually a percentage of the total value of the goods or services sold.
Yes, if the buyer becomes insolvent and is unable to pay for the goods or services, the Del Credere Agent can be held liable for the payment. However, they may have legal recourse against the buyer to recover the amount paid.
Yes, a Del Credere Agent can terminate their agreement with the principal, provided they comply with any contractual obligations or notice requirements specified in the agreement.
No, a Del Credere Agent is not responsible for the quality of the goods or services sold. Their liability is limited to the payment of the agreed amount in case of non-payment by the buyer.
No, a Del Credere Agent is not responsible for the actions or obligations of the principal. Their liability is limited to the payment of the goods or services sold.
Yes, if the buyer disputes the payment and refuses to pay, the Del Credere Agent can be held liable for the payment. However, they may have legal recourse against the buyer to resolve the dispute.
Yes, a Del Credere Agent can act on behalf of multiple principals, assuming the risk of non-payment for goods or services sold by each principal. However, they must disclose their multiple agency relationships to all parties involved.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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