Which statement correctly describes delegation and liability when novation is not present?

• A. Delegation always releases the delegator from liability.
• B. Obligations can be delegated, but the delegator remains liable unless there is a novation.
• C. The delegatee is always liable; The delegator is released.
• D. Delegation terminates the contract.

Answer: (B)

When you delegate a contractual duty without a novation, you’re passing the obligation to a third party to perform, but you don’t replace the original contract. The person who originally made the promise (the delegator) still bears liability to the other party if the delegatee doesn’t perform properly. The delegatee takes on the duty and can be liable for performing it, but the delegator remains ultimately responsible unless a novation occurs. A novation would substitute the new party for the old one, releasing the delegator from liability. Delegation itself does not terminate the contract. So the statement that best fits is that obligations can be delegated, but the delegator remains liable unless there is a novation.