Law of India

(a) DEL CREDERE : A del credere agent is a mercantile agent who in addition to his work of bringing a contract between his principal and third parties also undertakes to be liable to the principal for the default of the third party to perform the contract. In other words, he also guarantees to his principal the performance of the contract by the third party. He gets extra commission for this extra risk taken by him. Such commission is called ‘Del credere’ commission. Thus the Del credere agent occupies the position of both an agent and guarantor however, his liability is secondary which arises only on the default of the third party. Generally the function of an agent is ever after a contract is established. He is not answerable to his principal for the failure of the third party person to perform the contract. A Del Credere agent constitutes an exception to his rule. He is a mercantile agent, who, on the payment of some extra commission known as Del Credere commission, guarantees the performance of the contact by the third person, for instance, facts to pay for the goods supplied to him, the principal can bring an action against the Del Credere agent for the same. The liability of the Del Credere agent, like that of surety, is secondary and the same arises if the third person fails to pay to the principal. What is due under the contract.
MORRIES-V-CLEAS BY (1816) 4 M & S 566 :
b) GOOD WILLS : PARTNERSHIP (SECTION 14) The property of a firm, in the absence of a contract to the contrary, includes the Good wills of the business (S.14 of the Indian Partnership Act). The term ‘Good will’ is not defined in the Act. It is property, speaking, a commercial rather than a legal term. It is the value of the reputative and connections which the firm establishes overtime due to its integrity, efficient service to the customers, quality of its products, industry etc. This reputation enables the firm to earn more than the normal profit earned by the business as a