What's the difference between assignment and delegation?

What is assignment in a contract?

Assignment means transferring your place in the contract to another party. This can include your right to receive payment and, in some cases, your obligations.

When a full assignment happens, the new party steps into your role. Depending on the agreement, you may no longer be involved in the contract.

To fully transfer both rights and obligations, the other party's consent is usually required (often called a novation).

What is delegation and how is it different?

Delegation means having someone else perform the work, but you remain part of the contract.

Even if another company does the work, you are usually still responsible if something goes wrong. The other party can still hold you accountable for performance.

What to do next...

1. Identify whether you want to transfer rights, duties, or both.
2. Check your contract for assignment or delegation limits.
3. Consider whether you are willing to remain responsible for the work.
4. Get consent if required before involving another party.

What to consider in your specific situation

While the distinction is clear in general, your situation may depend on several factors.

• The wording of your contract regarding assignment or delegation.
• Whether the other party expects you personally to perform the work.
• The level of risk if performance is not completed properly.
• Any restrictions on transferring rights or duties.
• Local laws that may affect enforceability.
• The impact on your business relationship.

Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.