Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

del credere commission

Read a random definition: rule of inconvenience

A quick definition of del credere commission:

A del credere commission is a type of commission that a factor receives for guaranteeing payment to the principal of all debts that become due through the agency relationship. This means that the factor takes on extra responsibility and risk, and is compensated accordingly with a higher commission. It's like getting paid extra for doing a more difficult job.

A more thorough explanation:

Definition: A del credere commission is a type of commission paid to a factor (a person who sells goods on behalf of another) that is higher than usual because the factor guarantees payment to the principal (the person who owns the goods being sold) for all debts that become due through the agency relationship.

Example: Let's say that a company hires a factor to sell their products to retailers. The factor charges a del credere commission of 5%. This means that if a retailer fails to pay for the products they received, the factor will still pay the principal for the debt owed. In exchange for this guarantee, the factor charges a higher commission than they would if they did not offer this service.

Another example: A clothing manufacturer hires a factor to sell their products to department stores. The factor charges a del credere commission of 7%. This means that if a department store goes bankrupt and cannot pay for the products they received, the factor will still pay the manufacturer for the debt owed. The higher commission compensates the factor for taking on this risk.

The examples illustrate how a del credere commission works. The factor takes on the risk of non-payment by the retailers or department stores and guarantees payment to the principal. In exchange for this guarantee, the factor charges a higher commission than they would if they did not offer this service.

del credere bailiff | del credere factor

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
LSD+ is ad-free, with DMs, discounts, case briefs & more.