Legal Definitions - commission del credere

A commission del credere refers to an additional payment an agent receives from a seller in exchange for the agent personally guaranteeing that the buyer will pay for the goods or services. In this arrangement, the agent takes on the financial risk of the buyer defaulting. If the buyer fails to make payment, the agent is then responsible for covering that debt to the seller. This type of commission provides the seller with extra security, as the agent essentially insures the buyer's creditworthiness.

• Example 1: Art Gallery Sale

  An independent artist (the seller) commissions an art gallery (the agent) to sell a high-value sculpture. A collector (the buyer) agrees to purchase the sculpture but requests a payment plan over several months. The artist is hesitant due to the extended payment period. To reassure the artist, the gallery owner agrees to a commission del credere. This means the gallery receives its standard sales commission plus an additional percentage. If the collector fails to make any of the agreed-upon payments, the gallery owner is contractually obligated to pay the remaining balance to the artist, having guaranteed the buyer's debt.

• Example 2: International Export Deal

  A textile manufacturer (the seller) in one country wants to expand into a new, unfamiliar overseas market. They hire an export agent (the agent) to find distributors (the buyers) and manage sales in that region. The manufacturer is concerned about the credit risk of these new international buyers. The export agent, confident in their knowledge of the local market and distributors, agrees to a commission del credere. In return for a higher commission rate, the agent assumes the risk that any of the foreign distributors might default on payments for large shipments of textiles. Should a distributor fail to pay, the export agent is responsible for compensating the textile manufacturer for the unpaid amount.

• Example 3: Software Reseller Agreement

  A software development company (the seller) sells its specialized enterprise software through a network of authorized resellers (the agents). One large corporate client (the buyer) wants to purchase a significant number of licenses but prefers to pay in quarterly installments over a year. The software company wants assurance that these payments will be made on time. The reseller agrees to a commission del credere arrangement, earning a larger percentage of the total sale value. If the corporate client misses an installment payment, the reseller is legally bound to pay that outstanding amount to the software development company, having guaranteed the client's payment.