Multiple choice

An agent who in consideration of extra commission gives guarantee to his principal that the purchaser of the goods on credit will pay for the goods is called

  1. sub-agent

  2. mercantile agent

  3. broker

  4. del credere agent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A del credere agent is a mercantile agent. In the event of a third-party failing to pay, the del credere agent is bound to pay his principal the sum owned by third party.

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