- 6 Marks
Question
Certain agents are classified as special agents.
Required:
Explain the following special agents:
i. Factor (3 Marks)
ii. Del credere agent (3 Marks)
Answer
i. Factor: A factor is a mercantile agent who, in the course of his business, has the authority to sell goods, to consign goods, or to raise money on security for goods.
ii. Del Credere Agent: A del credere agent is an agent who, in return for a higher rate of commission, promises to indemnify the principal if the third party with whom he contracts in respect of goods fails to pay or deliver under the contract. A del credere agent acts as a surety of the buyer.
- Tags: Business Law, Del Credere Agent, Factor, Special Agents
- Level: Level 1
- Topic: Agency Law
- Series: MAY 2024
- Uploader: Dotse