Delegation of Duties: Transferring Contract Obligations

What Is Delegation of Duties?

Delegation of duties is the transfer of contractual obligations from the original party (the delegator) to a third party (the delegatee). Unlike assignment (which transfers rights), delegation transfers the responsibility to perform. The critical point: delegation transfers the work, but the original party remains liable if the delegatee fails to perform.

How It Works

  1. Party A has an obligation to Party B under a contract
  2. Party A delegates (transfers) the duty to perform to Party C
  3. Party C now performs the obligation
  4. Party A remains liable to Party B if Party C fails to perform properly

When Delegation Is Allowed

Delegation is generally permitted unless:

  • The contract prohibits it — many contracts include anti-delegation or anti-assignment clauses
  • The duty involves personal skill or judgment — you cannot delegate a duty to paint a portrait if you were hired specifically for your artistic talent
  • The other party has a substantial interest in having the original party perform — such as personal services contracts
  • Public policy prohibits it — certain regulated duties cannot be delegated

Delegation vs. Assignment

  • Assignment transfers rights (what you can receive)
  • Delegation transfers duties (what you must do)
  • Both can occur simultaneously — when someone "assigns a contract," they often assign rights and delegate duties together

The Liability Issue

The most important concept: delegation does not release the delegator from liability. Even after delegating, you remain responsible if the delegatee fails. Only a "novation" — where all parties agree to substitute a new party — releases the original party.

When to Consult a Lawyer

Consider consulting an attorney if you want to delegate your contractual duties, or if the other party to your contract has delegated their obligations to a third party you did not agree to work with.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.

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