Future Business Leaders of America (FBLA) Business Law Practice Exam

Which term describes the transferring of a duty under a contract?

1. Delegation

2. Assignment

3. Novation

4. Transfer

The correct answer is: Delegation

The term that describes the transferring of a duty under a contract is "delegation." In contract law, delegation involves one party (the delegator) transferring their responsibilities or obligations under the contract to another party (the delegatee). The delegator remains liable for the performance of the contractual duties, even though they have assigned those duties to another individual or entity. This means the original party retains responsibility if the delegatee fails to fulfill the obligation. In contrast, assignment typically refers to the transfer of rights rather than duties. Novation involves replacing one party in a contract with another, which also requires the consent of all original parties and extinguishes the original party's obligations. The term "transfer" is also more general and does not specifically define the legal context of transferring duties as delegation does. This makes delegation the most accurate term in relation to the given question.