Del Credere Agreement
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Del Credere Agreement
All You Need to Know
What is a Del Credere Agreement?
A Del Credere Agreement is a type of contract between a principal and an agent, where the agent guarantees that the third party (buyer) will pay for the goods sold. If the buyer defaults, the agent takes responsibility for payment.
In simple terms, it protects the seller (principal) by ensuring they receive payment, either from the buyer or directly from the agent. This agreement is widely used in business dealings to reduce financial risks and secure transactions.
Who Should Opt for a Del Credere Agreement?
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Businesses selling goods on credit through agents
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Exporters working with overseas trade agents
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Companies entering new markets and seeking payment security
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Principals who want agents to guarantee buyer payments
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Businesses aiming to reduce credit risk in trade
Why Choose EbizFiling?
EbizFiling has helped 5,000+ businesses with agreements and compliance services. Our legal experts draft clear and valid Del Credere Agreements tailored to your business needs.
We ensure that all terms such as payment guarantees, commission, risk coverage, and obligations are properly included to protect your interests. With transparent pricing and quick turnaround, we provide peace of mind to business owners.
To know more on this services online you may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.
Del Credere Agreement Charges
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Key Advantages of a Del Credere Agreement
Ensures Payment
Seller is guaranteed payment even if the buyer defaults.
Reduces Risk
Protects principals from financial losses in credit sales.
Boosts Trust
Improves confidence between businesses and agents.
Clear Terms
Defines roles, responsibilities, and commission.
Legal Protection
Provides a binding legal remedy in case of disputes.
Business Growth
Encourages trade by lowering credit risks.
Documents Required for Del Credere Agreement
Documents For Del Credere Agreement
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Business registration documents of principal and agent
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Identity & address proof of both parties
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Details of goods/services covered
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Terms of commission and payment
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Draft clauses for risk-sharing and guarantees
How to get your Del Credere Agreement in 5 steps
1
Share business details
2
Consult with experts
3
Draft agreement
4
Review & approve
5
Get final agreement
Share Business Details
Provide your basic business details, parties involved, and trade requirements. Our compliance team reviews the inputs before drafting begins.
Draft Agreement
Our legal experts draft a customized Del Credere Agreement with all necessary clauses, commission terms, and risk coverage provisions.
Get Final Agreement
You review the draft, suggest edits if needed, and once approved, we finalize and deliver the legally valid stamped agreement to you.
FAQs on Del Credere Agreement
Get answers to all your queries
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What is the main purpose of a Del Credere Agreement?
To guarantee payment to the seller even if the buyer defaults.
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Who are the parties in a Del Credere Agreement?
The principal (seller) and the agent.
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Does the agent get extra commission?
Yes, the agent usually charges a higher commission for taking risk.
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Is a Del Credere Agreement legally valid in India?
Yes, it is recognized under the Indian Contract Act, 1872.
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What happens if the buyer does not pay?
The agent must pay the seller on the buyer’s behalf.
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Is this agreement common in export trade?
Yes, exporters often use it to secure payments from foreign buyers.
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What is the benefit for the seller?
The seller is protected from credit risk and guaranteed payment.
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Can the agreement be customized?
Yes, terms like commission, scope, and obligations can be tailored.
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Is notarization required?
Not mandatory, but it adds legal strength.
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Can EbizFiling draft the agreement online?
Yes, we provide online drafting and delivery services.
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What is the role of the agent?
To sell goods, collect payments, and guarantee buyer’s payments.
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Can the agreement cover multiple buyers?
Yes, it can be drafted for one or many transactions.
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What documents are needed to draft the agreement?
Business proofs, ID proofs, and trade details of both parties.
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Does the principal still bear any risk?
Minimal, since the agent guarantees payment.
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Is stamp duty required?
Yes, agreements must be stamped as per state laws.
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How long does it take to draft one?
Usually 3–5 working days with EbizFiling.
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What is the duration of the agreement?
It can be fixed-term or transaction-based.
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Can disputes be resolved under this agreement?
Yes, dispute resolution clauses can be included.
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Is it suitable for startups?
Yes, especially if they trade on credit through agents.
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Can the agreement be terminated?
Yes, termination clauses can be included by mutual consent.
