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Unformatted text preview: . In the third year of the contract, Patrick wants to sell his agency
and assign the balance of the lease to the buyer, Alexsei. Since the assignment results in the same business renting the same space on exactly the
same terms, the lease can be assigned, even if Lateesha doesn’t like it. Her
burden or obligations have not changed in any significant way by simply
having a different owner of the business paying the rent and occupying
However, while an assignor can assign the benefits, he cannot transfer the liability on
the contract to the assignee! This is why it is so easy to assign contracts. In the example
above, if the rent does not get paid or damage is done to the premises, Lateesha can still
sue Patrick. rog80328_06_c06_111-133.indd 116 10/26/12 5:37 PM CHAPTER 6 Section 6.1 Third Parties Delegations
A delegation is the transfer of the duties on a contract. Suppose Peter Painter has contracted to paint Harry Homeowner’s house for $3,000. One week before he is due to start
painting the house, Peter falls off a ladder and breaks both his legs. He is unable to perform for Harry. Luckily for Peter, his brother Paul offers to step in and paint the house.
In this situation, Peter is the delegator, Paul is called the delegatee, and Harry is the
obligee, because he is entitled to have the duty performed for him (see Figure 6.3). Figure 6.3: Delegation of a contractual duty
Harry and Peter are the original parties to the contract, but now Peter has delegated the painting of the
house to his brother, Paul. If Paul paints the house the wrong color, Peter will still be liable to Harry. If Paul
did not receive consideration for painting the house, he has no liability to either Peter or Harry. The Delegation
Harry Peter Obligee Delegator
$ Paint job Paul
Delegatee ho Du
t nt y i
Pa Broken leg e us
“I’ll paint the
” rog80328_06_c06_111-133.indd 117 10/26/12 5:37 PM Section 6.1 Third Parties CHAPTER 6 Most duties can be delegated without the...
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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