Match each type of agent under commercial law with its correct definition or operational scope.
- Del credere agentAn agent who guarantees payment by third-party buyers in exchange for an extra commission
- FactorA mercantile agent entrusted with possession and control of goods to sell in their own name
- BrokerA mercantile agent who negotiates sales contracts without taking physical possession of goods
- Universal agentAn agent given unrestricted authority to handle all lawful business and legal affairs for the principal
Answer
Del credere agent matches with guaranteeing payment for an extra commission; Factor matches with selling goods in their own name while having possession; Broker matches with negotiating contracts without physical possession of goods; Universal agent matches with holding unrestricted legal authority.
Each agent type is accurately matched based on legal risk, possession of goods, and scope of authority: del credere agents guarantee buyer credit for an extra fee, factors sell goods while holding possession, brokers facilitate negotiations without taking custody, and universal agents hold unlimited legal authorization.
Step-by-Step Solution
Key Concept
Types and Authority of Mercantile and General Agents