Delegation of Duties Flashcards
What is a delegation?
A delegation occurs when a third-party agrees to satisfy a performance obligation owed by one of the parties to a contract
Does delegation create a “transfer” of duties such that delegator is no longer liabile?
No
Who is liable regarding delegated obligations?
Absent a novation, a delegation does not relieve obligations under the contract such that obligee can still sue the delegator for breach
What is a novation?
Agreement by all parties to relieve the delegator of liability regarding contract performance.
What is delagatee’s liability to delagator?
If delegation was for consideration, delegator has a breach of contract action against delagatee who doesn’t perform
What are delagatee’s obligations to obligee?
If the delegation was for consideration, an obligee can bring an action adjacent the delegatee as an intended third-party beneficiary of the delegation
Are all contract duties generally delegable?
Yes
What are exceptions to delegable contract duties?
- personal services
- contracts where delegation is prohibited