Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is
A) a delegation.
B) an assignment.
C) a third party beneficiary contract.
D) prohibited.

Question

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is​
A) ​a delegation.
B) ​an assignment.
C) ​a third party beneficiary contract.
D) ​prohibited.

Quizplus · Accepted Answer

Nick transferring his duties to Otis is an example of delegation, which is the transfer of one party's duties to another party. This can be done with the consent of the other party involved in the contract (in this case, Market Company). An assignment involves the transfer of rights under a contract, not duties. A third party beneficiary contract involves a third party who is not a party to the original contract but is intended to benefit from it. Prohibition would only occur if the contract explicitly states that delegation is not allowed.

Market Company and Nick Enter into a Contract for Nick