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Question

Del-credere commission is allowed -

A
to effect sales in the normal course of business.
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B
to bear the bad debts on account of credit sales.
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C
to effect sales at prices higher than the price fixed
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D
None of these
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Solution

The correct option is B to bear the bad debts on account of credit sales.
Consignee not receiving Del Credere commission Where the consignee is not in receipt of Del credere commission he would not be responsible for the non payment of dues by the consignment debtors and thus the consignor would have to bear the loss on account of bad debts.

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