special contract

As per your concern, let me enlighten you that a "Mercantile Agent" is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the ‘Principal’.

A mercantile agent possesses the following characteristics:

(a) He has the authority to buy and sell goods on behalf of his principal or to consign them for the purpose of sale;

(b) He does not do business for himself, but he only represents his principal in all business dealings;

(c) He is a link between the principal and the third parties in so far as the business transactions are concerned;

(d) He is a business intermediary between the manufacturer and the ultimate consumer who helps in the transfer of goods without actually acquiring the ownership of the same; and

(e) He is also entitled to a commission from his principal, as a monetary consideration for his services.

As per the legal context a commercial agent, such as a factor or broker,
who in the ordinary course of his business has authority to:-
⭕ sell goods,
⭕ to consign goods for sale,
⭕ to buy goods, or
⭕ to raise money on the security of goods on behalf of his principal, is said to be known as a Mercantile Agent.


Hope It Helps!

Regards,
Kevin M. Paul

What are the facts? What is the context?

As per your concern!

As per section 2(9) of the Sale of goods act, 1930, a mercantile agent is a person who in the customary course of business has an agent’s authority either to sell or consign the goods for sale or to buy goods or to raise money on the security of goods.

Thus, this definition covers the following:
1. Factors:

A factor is a person who is appointed to sell goods that are put in his possession or to buy goods for his principal. He is the evident owner of the goods in his custody and can thus sell them in his name and receive payment for them.

He also has an insurable interest in the goods in his custody and a general lien regarding any claim that he may have to arise out of the agency.

2. Brokers:
A broker is a person whose business is to make contacts with the other parties for the sale and purchase of goods or securities for brokerage.

He does not have possession of the goods and acts in the name of the principal. Also, he has no lien over goods because he has no possession of goods.

3. Del Credere Agent:

A del credere agent is a person who ensures or guarantees his principal that the creditors of goods will pay for the goods they buy for extra remuneration. In the case of failure to pay by the third party, he needs to pay the due amount to his principal.

3. Bankers:
The relation between a banker and a customer is that of a debtor and creditor. However, when a banker buys or sells securities or collects cheques, dividends, interests, bills of exchange or promissory notes on behalf of his customer, he becomes the agent of his customer. Thus, he has a general lien on all the securities in his possession regarding the general balance due to him by the customer.

4. Partners:

As per the Partnership Act, every partner is an agent as well as the principal of every other partner in a Partnership firm. Also, every partner is the agent of the firm for the business of the firm.

5.Auctioneers:

An auctioneer is a person who sells goods by auction. An auction is a process by which goods are sold to the highest bidder in a public competition. He cannot warrant his principal’s title to the goods.

He is the agent of the seller until the goods are auctioned or knocked down. However, after the knockdown, he becomes the agent of the buyer. Also, he is evidence that the sale took place.

Hope it helps!

Regards
Minakshi Bindhani