Unformatted text preview: obligee’s consent, unless the nature of performance is personal. This is partly because the liability is not delegated. Consider the following example:
Example 6.7. Peter contracts to paint Harry’s house for $3,000. The house
is to be painted beige. Peter delegates to Paul. Paul paints the house pink.
Peter is liable to Harry. Basically, the delegator remains liable unless the obligee gives him
a release of some type. Note that even if Harry agrees expressly to the delegation, that
does not mean Harry is releasing Peter from liability.
What of Paul, the delegatee? Does he have any liability for the pink house? The answer is
no, unless he received consideration for undertaking the delegation. In that case, Paul is
actually breaching a contract with Peter, and since Harry was an intended beneficiary of
that contract, either Peter or Harry could sue.
Example 6.8. Peter contracts to paint Harry’s house, then he pays Paul
$1,500 to do the work for him. Paul paints the house the wrong color.
Because Paul received consideration, if Harry sues Peter, Peter could sue
Paul. If Harry chooses, he could bypass Peter and sue Paul as a third-party
beneficiary of the Peter-Paul contract.
If Peter were to simultaneously assign and delegate the contract with Harry to Paul, the
assignment portion serves as consideration for Paul’s undertaking the delegation.
However, if the duty is of a personal nature, or if the obligee was relying on individualized qualities of the delegator, the delegation would be invalid.
Example 6.9. Peter contracts to paint Harry’s portrait for $3,000. Peter now
realizes he’s taken on too many commissions, and he delegates to Paul,
who is also an excellent artist.
Harry need not accept performance from Paul, since he was relying on Peter’s personal
style as an artist. Of course, if Harry chooses, he could consent to the delegation, in which
case Harry is actually forming a new contract.
Example 6.10. Stephen contracts with Angela Attorney for representation
in his upcoming trial. Although Angela can delegate resea...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.
- Spring '10
- Business Law