WAEC Commerce 2016 Theory — Question 7

Model answer

(a) A broker is an agent who create link between a buyer and seller, it does not take possession of goods and receives brokerage as commission meanwhile, the factor takes possession of goods and sell on behalf of the owner. He receives factorage as commission. (b) Duties of employer to employee: - the employer is obliged to pay the employee at regular interval as agreed up. - the employer must protect the employee physically and legally in the course of discharging its employment duties. - also, the employer is obliged to compensate the employee for any loss suffered doing the course of discharging its primary duties. (c) Duties of employee to employer: - the employee must always act in utmost good faith while discharging his duties. - he must protect the interest of the employer always. - also, the employee should inform his employer of any loss that he might forecast. - finally, the employee must give periodic account to his employer.