Del credere is an Italian phrase that translates to “of belief or trust.” It pertains to agents who sell goods and assume the responsibility of ensuring that the buyer is able to pay for them. These agents receive higher compensation for taking on this added responsibility.
Del credere refers to a specific type of agent who has the responsibility of ensuring that the buyer of goods is capable of paying for them. These agents receive higher compensation due to the additional risk they take on. For instance, if a del credere agent sells goods to a buyer who ultimately cannot afford them, the agent will be liable for the cost of the goods. This type of agent is commonly utilised in international trade where there is a greater likelihood of non-payment.
Del Credere is a legal term that refers to a type of guarantee provided by a third party to a buyer in a transaction.
The purpose of a Del Credere is to provide an additional level of security to the buyer in a transaction, by guaranteeing that the seller will fulfill their obligations.
A Del Credere is typically provided by a third-party agent or broker who is acting on behalf of the buyer.
The benefits of a Del Credere include increased security for the buyer, as well as increased confidence in the transaction.
The risks associated with a Del Credere include the potential for the third-party guarantor to default on their obligations, as well as the potential for disputes to arise between the buyer and seller.
A Del Credere is typically enforced through legal action, such as a lawsuit or arbitration.
A Del Credere is a type of guarantee provided by a third party, while a letter of credit is a financial instrument that guarantees payment from a buyer to a seller.
A Del Credere can be revoked if the buyer and seller agree to do so, or if the third-party guarantor defaults on their obligations.
The cost of a Del Credere is typically negotiated between the buyer, seller, and third-party guarantor, and may be based on factors such as the value of the transaction and the level of risk involved.
A Del Credere is not required in all transactions, but may be used in situations where the buyer requires additional security or confidence in the transaction.
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: 25th April 2024.
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