agent buys and sells goods on behalf of the principal for a fixed rate of commission for all his transactions. All risks connected with his transactions are borne by the principal. His functions are more varied than a broker and he takes decision over the prices and terms of the sale. He has expert knowledge of the goods and trends in the market.
He takes possession of the goods without title over them and sells in his own name. (iv) Del-credere Agents The agent who guarantees to the principal the collection of cash from credit sales is called del-credere agent’. If they do not pay, the agent would bear the loss himself. He is given an additional commission known as del-credere commission for bearing the risk.
He carefully selects the buyers to whom credit can be extended based on their honesty and reliability. (v) Auctioneers Auctioneers are agents who sell goods by auction on behalf of their principals. Auction sale is made through a notification to the public. The notice clearly mentions the date, time, place and details of goods which will be widely published through newspapers, posters, leaflets and announcements etc., Auction sale may be “WITH RESERVE” and “WTIHOUT RESERVE”.
In case of auction “WITH RESERVE” no sale can take place below the minimum price fixed by the seller, which is known as “Reserve Price”. In case of auction “WITHOUT RESERVE” the auctioneer is bound to sell the product to the highest bidder. The price for which the bid is accepted is called “knocked down price”. Striking a hammer on the desk indicates the acceptance of a bid by auctioneer.
After the highest bid is accepted, the auctioneer becomes the agent for both the seller and the buyer. For his services, the auctioneer is entitled to receive a commission, which is a certain percentage of the sale proceeds. (vi) Warehouse–keeper A Warehouse keeper accepts goods for the purpose of storage in his warehouse. He should exercise reasonable care and diligence Commerce - - .
. PM in the storage of goods. He is entitled to payment for his