What is the difference between assignment and delegation?

• A. An assignment is the transfer of duties; a delegation is the transfer of rights.
• B. An assignment is the transfer of rights; a delegation is the transfer of duties.
• C. Both are the transfer of rights and duties.
• D. Neither transfers rights or duties.

Answer: (B)

The key idea being tested is how contracts handle what can be transferred: rights versus duties. An assignment is when a party who is owed a benefit under a contract (a right) transfers that right to someone else. The other party to the contract then owes that benefit to the new holder, not to the original holder. For example, if you have a contract to receive a payment, you can assign that right to another person, and the payer would have to pay the new holder instead of you. Importantly, this transfer typically does not relieve you of any obligations you still have under the contract, and the contract’s terms or law may limit or prohibit assignments.

A delegation, on the other hand, is when a party who has a duty to perform under a contract transfers that duty to someone else. The delegating party still remains liable if the new performer messes up, unless the other party agrees to a novation that releases the delegator. Delegation is about who performs the obligation, not about who benefits from the contract. And some duties—especially those requiring personal skill or trust—cannot be delegated or may require the other party’s consent.

Therefore, the correct distinction is that rights are transferred in an assignment, while duties to perform are transferred in a delegation.