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Contracts, 12% of the examination

Assignment

The transfer of contractual rights from an assignor to an assignee.

Assignment transfers contractual rights, while delegation transfers performance duties. A general assignment can also operate as a delegation when its language and circumstances show that result, but the original obligor remains liable unless the obligee agrees to a novation. A right may be nonassignable when assignment would materially change the other party's burden or risk, or when law, contract, or the personal nature of the performance restricts transfer.

What this is confused with

The exam rarely asks for a definition. It describes a situation and offers two terms that both sound plausible.

Novation

Assignment transfers a right but does not automatically release the original party. Novation substitutes and releases with consent.

See also

Test the distinction

A relevant question from Contracts, selected because its facts or explanation use this concept.

Contracts ยท 12%Agreements

A seller and buyer agree to substitute a new buyer, releasing the original one entirely. What is this?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Other terms in this area