State two distinguishing features between each of the following;
(a) Tramps vessels and ocean liners
(b) A factor and a broker
(c) A commissioned agent and a del credere agent
(d) consular invoice and proforma invoice
(e) Insurance and assurance
Explanation
| Tramps vessels | Ocean Liner |
|
(i) These are ships which have no fixed route and time of sailing (ii) Their charge depends on demand (iii) Tramps vessels are smaller vessels that carry fewer passengers and less volume of cargoes (iv) There are available for general hire |
(i)These are ships that operate on fixed and regular route (ii)Their charge is determined by the shipping conference (iii)Ocean liners are bigger vessels that carry more passengers and large volume of goods (iv) There are booked for hire in advance
|
| A Factor | A Broker |
|
(i) An agent that takes possession of goods (ii) He sells in his own name (iii) He has lien/legal claim on his principal's goods for any outstanding claim |
An agent that does not take possession of goods He does not sell in his own name He has no such right, he merely brings buyers and sellers together for a commission |
| A commissioned agent | A Del credere Agent |
|
(i) An agent that does not guarantee payment of credit sales (ii) He is paid ordinary commission (iii) He does not bear any bad debts. |
An agent that guarantees full payment for credit sales He receives extra commission called del credere He bears bad debts resulting from credit sales made by him |
| Consular invoice | Proforma invoice |
|
(i) A document signed by the consul or representative of the importing country (ii) It ensures the assessment of appropriate custom duty (iii) It is used only in foreign trade |
A document sent by a seller to a buyer. It is used by a seller who does not want to sell on credit It is used in home and foreign trade. |
| Insurance | Assurance |
|
(i) It is a contract of indemnity/restoration to former position (ii) The risk insured may or may not occur (iii) Insurance contracts require renewals |
It is a contract of indemnity. It only compensates The risk insured is certain to occur (death) Assurance contract does not require renewal |