Rights and Obligations in Transfer of Contract

•  Rights and obligations under a contract are transferred to others by means of an assignment or delegation, respectively.

•  The assignee (party to whom rights are transferred) under the terms of an assignment receives the same rights that the assignor (party transferring the rights) had.

•  Rights for personal services (those involving a special skill, knowledge, or talent) must have the consent of all parties before they can be transferred (assigned); however, non-personal rights may be transferred without consent.

•  In a delegation, only the performance of an obligation is transferred to another (delegatee); the delegating party (delegator) remains responsible for its proper performance. Obligations that require a special skill, knowledge, or talent may not be transferred without consent.

•  An assignment may be oral or written unless a written assignment is required by the terms of the contract or by a state statute.

•  When a contract is transferred to a third party but contains only language of assignment, the wording creates both an assignment of rights and a delegation of duties.