What is the meaning of a del credere agent?

Related Content. An agent who is required by the principal to enter into a guarantee of the debts to the principal of customers whom he finds for the principal with whom he concludes contracts on behalf of the principal.

What is a del credere commission?

It is an additional premium charged by a factor or an agent in consideration of which he guarantees the payment of the customers and becomes personally liable for the price of the goods sold. It is a special commission given by the consignor to the consignee.

What is del credere agent India?

A del credere agent is defined as one, who, in consideration of extra remuneration, called a del credere commission undertakes that the persons with whom he eaters into contracts on the principals’ behalf will b(r) in a position- to perform their duties.

What is del credere commission and over riding commission?

Answer: Delcredere Commission: To increase the sale and encourage the consignee to make credit sales, consignor provide an additional commission called delcredere commission. Overriding Commission : It is an extra commission allowed by consignor to consignee to promote sales at higher price than invoice price.

What is Del Credere commission example?

A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson, or broker, for the principal, but also as a guarantor of credit extended to the buyer. Auction houses are the most common example of a del credere agency.

How is Del Credere commission calculated?

Explanation: This means it is usually allowed in the case of credit sales. Generally it is calculated on total sales i.e. sum of cash sales and credit sales.

What is del credere commission example?

How is del credere commission calculated?

Why is the Del Credere commission important?

Del Crede commission is that of a surety who is liable to the principal should the purchaser make default. A Del Credere Agent not only establishes a privity of contract between the principal and the third party but also guarantees to the principal the due performance of the contract by the third party.

What is the difference between commission and del credere commission?

Commission agent: As the name suggests, he is the one who takes certain amount as a commission for performing his duty. An additional commission called del credere commission is the fixed percentage of amount of credit sales which is given to del credere agents so that he can bear the risk of bad debts.

What do you mean by overriding commission?

A fee or percentage of money which is paid to a party responsible for placing a retrocession of reinsurance. In insurance, a fee or percentage of money which is paid by the insurer to an agent or general agent for premium volume produced by other agents in a given geographic territory.

What is the meaning of a del credere agent? Related Content. An agent who is required by the principal to enter into a guarantee of the debts to the principal of customers whom he finds for the principal with whom he concludes contracts on behalf of the principal. What is a del credere commission? It…