Del credere agent meaning

A del credere agent is a commercial agent who, for an additional del credere commission, promises the principal that the third‑party customer will perform—most commonly, that the contract price will be paid when due. This is a collateral guarantee creating a secondary liability: if the customer defaults, the agent must indemnify the principal, and may then recover from the customer by subrogation. The expression is a long‑established mercantile term recognised in case law rather than defined by statute, and it operates alongside (but is not created by) commercial agency legislation. The del credere undertaking typically covers credit risk only (solvency and payment), not quality, fitness for purpose or other performance obligations unless expressly agreed. It is frequently used by commission agents and auctioneers in commodity and shipping trades to facilitate sales on credit. The principal need not first sue the customer unless the agreement requires it. As a guarantee, formality rules apply. England & Wales: written evidence is required (Statute of Frauds 1677). Northern Ireland and Ireland: a note or memorandum in writing is required (Statute of Frauds (Ireland) 1695). Scotland: no statutory writing requirement, though cautionary obligations are commonly documented.