Del Crede Agent Case Study

On the other hand, a del credere agent is an agent that must wisely choose third party in order to guarantee third party is trustworthy. A del credere agent needs to make sure the third party will make payment to principal. An example of case is Campbell v Kitchen & Sons Ltd (1910) 12 CLR 515. The relationship between a del credere agent and a principal is formed when the del credere agent agreed to become liable for the payment of goods if the third party default. The liability of a del agent is only invoked when the third party did not pay for the goods. Del credere liability is an instrument that can be utilized by a principal to lower the rate of risk of non-payment of the goods by third parties. Therefore, a del agent need to be wise in