del credere

Comparative law notes


Add to EN dict. An arrangement in which an agent or factor-an individual who takes possession and agrees to sell goods for another-consents for an additional fee to guarantee that the purchaser, to whom credit has been extended, is financially solvent and will perform the contract. As the result of a del credere agency, the del credere agent becomes a surety of the purchaser. If the purchaser defaults, the agent is responsible to the principal for the outstanding amount. A del credere commission is the extra fee paid to the agent for such promises