Types of commission
Types
of commission
1.
Del – Credere Commission-- The
additional commission for which the consignee guarantees debt is called
del-credere commission. This commission save consignor from loss of bad
debts only.
The agent is responsible for bad debts due but not for loss due to a dispute between the buyer and the seller. The del-credere commission is payable on total sales and not merely on credit sales.
2. Ordinary Commission :-- Ordinary commission is a commission which consignee gets as his remuneration from the consignor for the sales made on behalf of the consignor. In this case the consignee does not guarantee that all those who buy on credit will pay up. The consignee is not responsible for bad debts.
3. Over ridding commission. It is allowed to increase sales volume/ sales price. It is calculated as per instruction given in question.
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