Which statement about assignment and delegation is correct?

Which statement about assignment and delegation is correct?

• A. Delegation always releases the obligor from liability
• B. The assignment terminates the contract
• C. The obligor remains liable to perform even after delegation
• D. The obligee becomes the obligor

Answer: (C)

Delegation transfers who performs the duty, while assignment transfers who will receive the benefit. If you delegate a duty, you still carry the obligation to perform; the other party can sue you if the delegatee fails unless the obligee releases you or a novation occurs. Assignment does not end the contract—it simply moves the right to receive performance to someone else, while the contract itself stays in effect between the original obligor and obligee. The obligee does not become the obligor; rather, the person who holds the right to receive performance (the assignee) becomes the new recipient of that performance. So the obligor remaining liable after delegation is the correct idea.

Delegation transfers who performs the duty, while assignment transfers who will receive the benefit. If you delegate a duty, you still carry the obligation to perform; the other party can sue you if the delegatee fails unless the obligee releases you or a novation occurs. Assignment does not end the contract—it simply moves the right to receive performance to someone else, while the contract itself stays in effect between the original obligor and obligee. The obligee does not become the obligor; rather, the person who holds the right to receive performance (the assignee) becomes the new recipient of that performance. So the obligor remaining liable after delegation is the correct idea.