In short
An assignment transfers a party's rights under a contract; a delegation transfers its duties. Both are generally allowed unless the contract prohibits them, the duty involves personal services, or the change would materially alter the other party's position.
Key takeaways
- The assignee takes the rights subject to any defenses the other party had against the assignor.
- A party who delegates duties remains liable if the delegate doesn't perform.
- Notice to the obligor makes it pay the assignee rather than the original party.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?