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 A person who in consideration for an extra commission takes responsibility for goods sold on...

Commerce
JAMB 2021

 A person who in consideration for an extra commission takes responsibility for goods sold on credit and in case of default is a 

  • A. commission agent
  • B. factor
  • C. broker
  • D. del credere agent
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Correct Answer: Option D
Explanation

A del credere agency is a type of principal-agent relationship wherein the del credere (agent) for an extra commission, acts not only as a salesperson, or broker, for the principal, but also as a guarantor of credit extended to the buyer.

The del credere agent stands in as a guarantor for the buyer who is buying the goods on credit, and in return, gets paid an extra commission by the buyer


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts