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
- Party A has an obligation to Party B under a contract
- Party A delegates (transfers) the duty to perform to Party C
- Party C now performs the obligation
- 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.