Edgar Winter is a sales agent for Magnum Enterprises. Winter has assumed an obligation to indemnify Magnum if any of Winter's customers fail to pay. Under these circumstances, which of the following is true?
A. Winter's engagement must be in writing regardless of its duration.
B. Upon default, Magnum must first proceed against the delinquent purchaser-debtor.
C. The above facts describe a del credere agency relationship, and Winter will be liable in the event his customers fail to pay Magnum.
D. There is no fiduciary relationship on either Winter's or Magnum's part.
Answer: C. The above facts describe a del credere agency relationship, and Winter will be liable in the event his customers fail to pay Magnum.
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What will be an ideal response?