A del credere agent agrees to indemnify the principal in the event of non-performance by the third party. This means that the agent takes on additional responsibility for the transaction and provides an added layer of protection for the principal. Del credere agents are usually entitled to a higher commission than regular agents, as they are assuming greater risk.

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A Del Credere Agent

Question 42

Multiple Choice

A del credere agent:

A) agrees to indemnify the principal in the event of non-performance by the third party.
B) is usually not entitled to a commission.
C) agrees to indemnify the principal in the event of negligence.
D) is authorised to do anything on behalf of the principal that the principal can do.

Correct Answer: