Commission agent

A commission agent buys and sells goods in return for a commission. He will serve as a middleman between his principal (Employer) and the product owners or consumers. He gets a fixed commission for all his transactions. He does not take the risk of the trade and all the risks involved in his transactions are borne by his employer. A commission agent possesses expert knowledge of the goods and trends of the market. The commission agent’s services are broader than the brokers as the commission agent usually take possession of the goods and does business in his own name. Further he takes decision over the prices and terms of the sale.However he cannot be a wholesaler, as he is not having the title to goods he deals in.