Match each type of commercial agent with its corresponding operational role and authority limit under the Law of Agency.
- Del credere agentGuarantees third-party payment to the principal in exchange for an extra commission
- FactorTakes actual possession of goods and sells them in their own name
- BrokerNegotiates contracts between buyer and seller without having physical possession of the goods
- Universal agentPossesses unlimited authority to perform all lawful acts on behalf of the principal
Answer
Del credere agent matches with guaranteeing third-party payment for extra commission; Factor matches with taking actual possession of goods and selling them in their own name; Broker matches with negotiating contracts without physical possession of goods; Universal agent matches with possessing unlimited authority to perform all lawful acts.
Each agent type is accurately matched with its legal function: a del credere agent guarantees payment by buyers for extra commission; a factor holds custody of goods and sells them in their own name; a broker brings buyers and sellers together without holding goods; and a universal agent has comprehensive authority to act for the principal.
Step-by-Step Solution
Key Concept
Classification and Authority Limits of Agents in Commercial Law
Estimated Time:1m 0s