Kinds of agents that can be classified from the point of view of the nature of work performed are:
(i) Mercantile agents:
A mercantile agent is one who has authority either to sell goods or to buy goods or to raise money on the security of goods [Sec. 2(9) of the Sale of Goods Act]. The various kinds of mercantile agents are as follows:
ADVERTISEMENTS:
(a) Factor:
A factor is a mercantile agent to whom goods are entrusted for sale. He enjoys wide discretionary powers in relation to the sale of goods. He sells the goods in his own name upon such terms as he thinks fit. He may pledge the goods as well.
(b) Commission agent:
A commission agent is a mercantile agent who buys or sells goods for his principal on the best possible terms in his own name and who receives commission for his labours. He may have possession of goods or not.
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ADVERTISEMENTS:
(c) Del credere agent:
He is one who in consideration of an extra commission, guarantees his principal that the third persons with whom he enters into contracts on behalf of the principal shall perform their financial obligations, that is, if the buyer does not pay, he will pay. Thus, he occupies the position of a surety as well as of an agent.
(d) Broker:
ADVERTISEMENTS:
He is one who is employed to make contracts for the purchase and sale of goods. He is not entrusted with the possession of goods.
He simply acts as a connecting link and brings the two parties together to bargain and if the transaction materialises he becomes entitled to his commission called brokerage. He makes contracts in the name of his principal.
(ii) Non-mercantile agents:
They include advocates, attorneys, insurance agent, wife, etc.