COMMISSION AGENT Meaning and
Definition
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A commission agent refers to a person or entity who acts as an intermediary or middleman in commercial transactions and earns income in the form of a commission for facilitating such transactions on behalf of another party. This individual or entity, also known as a consignment agent or sales agent, essentially functions as a representative of the principal in various business dealings.
The commission agent's primary role is to negotiate and secure business contracts, typically related to the sale or purchase of goods or services, between the principal and prospective clients. They act as a facilitator between the parties involved, working to establish mutually beneficial agreements and ensure the smooth execution of transactions.
The commission agent does not have direct ownership of the merchandise being traded, but rather acts as an agent in the agreement. They assume a fiduciary responsibility on behalf of the principal, which entails acting in the principal's best interest and carrying out the agreed-upon terms and conditions.
In return for their services, the commission agent receives a commission or compensation based on an agreed-upon percentage of sales or the value of the transaction. This remuneration is typically paid after the completion of the deal or as per the terms established in the contract between the commission agent and the principal.
Overall, a commission agent plays a crucial role in facilitating business transactions, acting as a trusted intermediary between buyers and sellers while earning a commission for their services.
Common Misspellings for COMMISSION AGENT
- xommission agent
- vommission agent
- fommission agent
- dommission agent
- cimmission agent
- ckmmission agent
- clmmission agent
- cpmmission agent
- c0mmission agent
- c9mmission agent
- conmission agent
- cokmission agent
- cojmission agent
- comnission agent
- comkission agent
- comjission agent
- commussion agent
- commjssion agent
- commkssion agent
- commossion agent
Etymology of COMMISSION AGENT
The word "commission agent" is composed of two parts: "commission" and "agent".
The term "commission" is derived from the Latin word "commissio", which means "authorization" or "entrustment". It refers to the act of granting authority or authorization to someone to carry out a specific task or represent another person in a particular capacity. In the context of business, a commission is a fee or percentage paid to someone for their services, especially in sales.
The word "agent" comes from the Latin word "agens", which translates to "one who acts" or "one who does". It refers to a person or entity authorized to act on behalf of another individual or organization, usually in a representative capacity. An agent may have the power to negotiate, make decisions, or perform tasks within the scope of their authority.
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