Del Credere Agent Agreement

an agreement whereby an agent or a factor, for the remuneration of an additional premium or commission (a so-called credere commission), enters into the solvency of the buyer when selling property on credit, insurance, guarantee or guarantee from his client, the factor being to pay the debt himself if it is not discharged on time by the buyer when it matures. when a company chooses to use a sales agent to sell its products. Under this agreement, the agent is designated as a Del Credere agent, which means that the representative undertakes to guarantee all amounts that are due to the principle of clients found by the agent with whom the agent has contracted on behalf of the principal. The maturity and termination clause can be used to satisfy the transformation of the agency contract from a fixed term to an indeterminate period (in the event that the parties simply continue their benefit after the expiry of the original agreement). Notice periods have also been introduced. Auction houses can be a form of agency del credere. If the owner of a product or item wants to auction it, they usually get conditions with a auction house or auctioneer on the sale process. The auction house then sets the rules and conditions of the auction to potential bidders. There may be certain requirements to become a bidder, especially if the item being auctioned is considered to be of considerable value.

The type of agency del credere puts the agent in a situation where he is related to both the buyer and the seller of the product or service in the transaction. If they sell the service or product, they also guarantee that the buyer will pay for it properly. It is not uncommon for a creed agent to charge higher rates in addition to their commission, because they take a greater risk with customers. A credere may decide to work only with buyers with a certain credit or credit rating, to better ensure that they pay their bills consistently. Offer requirements may include depositing or providing other proof of liquidity. The goal is to ensure that the winning party can exploit the amount they offer. If the winning bidder cannot or cannot choose not to pay the agreed price, the auctioneer has the right to take further collection action. The product can be put up for sale by an auction. The preferred option for buyers that del credere agent is that the buyer will make the full refund of the transaction. A credere agent can most easily be understood as a combination of a seller and an insurance company. An important clue is that a creder agent will only be required to pay the customer after the buyer has fallen behind in payment.