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Contracts/Delegation: Difference between revisions
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===Compare: assignment=== | ===Compare: assignment=== | ||
A parallel concept to delegation is [[assignment (law)|assignment]], which occurs when one party transfers his present rights to receive the benefits accruing to the assignor under that contract. A delegation and an assignment can be accomplished at the same time, although the right to sue for nonpayment always stays with delegator. Under the [[common law]], a contract clause prohibiting assignment also prohibits delegation. Another common law rule requires that a party to a contract can not delegate performance that involves special skills or reputation (although it is possible to have a [[novation]] under such circumstances). | A parallel concept to delegation is [[assignment (law)|assignment]], which occurs when one party transfers his present rights to receive the benefits accruing to the assignor under that contract. A delegation and an assignment can be accomplished at the same time, although the right to sue for nonpayment always stays with delegator. Under the [[common law]], a contract clause prohibiting assignment also prohibits delegation. Another common law rule requires that a party to a contract can not delegate performance that involves special skills or reputation (although it is possible to have a [[novation]] under such circumstances). | ||
==Administration Law== | |||
In [[Administrative Law]] (the law that controls government action and decisions) a delegation is the process of handing some administrative action or decision to a subordinate. It is achieved through two mechanism: | |||
# Where a [[statute]] appoints an "authorized person" to manage the power for a [[government minister|minister]] or [[Chief Executive officer|CEO]]. Here the delegate acts in their own name, and the delegation is a position that does not cease with the appointment of a new delegate.<ref>Kelly v Watson,(1985) 10 FCR 305.</ref> | |||
# In some circumstances a person in whom a power is vested can authorize | |||
another person to exercise that power for and on his or her behalf.<ref>'[[Carltona Ltd v Commissioners of Works]] [1943] 2 All ER 560'</ref><ref>O’Reilly v State Bank of Victoria Commissioners (1983) 153 CLR 1</ref> Here the underling is appointed to act as if they were the authorized person, usually for the ''Administrative necessity''<ref>[[Sandra Investments Pty Ltd v Booth]] [1983] HCA 46 (1983) 153 CLR 153</ref><ref> O'Reilly v State Bank of Victoria (1983) 153 CLR 1 per Brennan J.</ref> of managing huge work loads in a government department. Here the delegate acts in person of the authorized person rather than in their own name, and the delegator can still exercise the powers as necessary<ref>Huth v Clarke (1890) 25 QBD 391 at 395 per Wills J.</ref> even though much of the day to day operations are enacted by subordinates. | |||
== External links == | == External links == | ||
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{{DEFAULTSORT:Delegation (Law)}} | {{DEFAULTSORT:Delegation (Law)}} | ||
[[Category:Contract law]] | [[Category:Contract law]] | ||
[[Category:Administrative law]] | [[Category:Administrative law]Administrative necaseity:Sandra Investments Pty Ltd v Booth [1983] HCA 46 (1983) 153 CLR 153; O'Reilly v State Bank of Victoria (1983) 153 CLR 1 per Brennan J.+ | ||
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Revision as of 19:25, August 24, 2017
In contract law and administrative law, delegation (Latin intercessio) is the act of giving another person the responsibility of carrying out the performance agreed to in a contract. Three parties are concerned with this act - the party who had incurred the obligation to perform under the contract is called the delegator; the party who assumes the responsibility of performing this duty is called the delegatee; and the party to whom this performance is owed is called the Debtor.
Contracts
Delegable contracts
A delegation will be null and void if it poses any threat to the commercially reasonable expectations of the obligee. For example, a task requiring specialized skills or based on the unique characteristics of the promisee can not be delegated. If a specific celebrity was hired to make a speech, they could not delegate the task to another person, even if the other person would give the same speech, word for word. However, a delegation of performance that does not pose such a threat will be held to be valid. In such a case, the obligee will be under an affirmative duty to cooperate with the delegatee to the extent necessary for the fulfillment of the delegator's obligations
Breach of a delegated contract
If the delegatee fails to perform satisfactorily, the obligee may elect to treat this failure as a breach of the original contract by the delegator or may assert himself as a third party beneficiary of the contract between the delegator and the delegatee, and can claim all remedies due to a third party beneficiary.
If the delegation is without consideration, the delegator remains liable for nonperformance, while the delegatee will not be liable to anyone for anything. Unlike an assignment, a delegation is virtually always for consideration, and never donative - few people are going to accept the charitable offer to perform a task contracted to someone else.
Compare: assignment
A parallel concept to delegation is assignment, which occurs when one party transfers his present rights to receive the benefits accruing to the assignor under that contract. A delegation and an assignment can be accomplished at the same time, although the right to sue for nonpayment always stays with delegator. Under the common law, a contract clause prohibiting assignment also prohibits delegation. Another common law rule requires that a party to a contract can not delegate performance that involves special skills or reputation (although it is possible to have a novation under such circumstances).
Administration Law
In Administrative Law (the law that controls government action and decisions) a delegation is the process of handing some administrative action or decision to a subordinate. It is achieved through two mechanism:
- Where a statute appoints an "authorized person" to manage the power for a minister or CEO. Here the delegate acts in their own name, and the delegation is a position that does not cease with the appointment of a new delegate.[1]
- In some circumstances a person in whom a power is vested can authorize
another person to exercise that power for and on his or her behalf.[2][3] Here the underling is appointed to act as if they were the authorized person, usually for the Administrative necessity[4][5] of managing huge work loads in a government department. Here the delegate acts in person of the authorized person rather than in their own name, and the delegator can still exercise the powers as necessary[6] even though much of the day to day operations are enacted by subordinates.
External links
Template:Authority control [[Category:Administrative law]Administrative necaseity:Sandra Investments Pty Ltd v Booth [1983] HCA 46 (1983) 153 CLR 153; O'Reilly v State Bank of Victoria (1983) 153 CLR 1 per Brennan J.+ ]
- ↑ Kelly v Watson,(1985) 10 FCR 305.
- ↑ 'Carltona Ltd v Commissioners of Works [1943] 2 All ER 560'
- ↑ O’Reilly v State Bank of Victoria Commissioners (1983) 153 CLR 1
- ↑ Sandra Investments Pty Ltd v Booth [1983] HCA 46 (1983) 153 CLR 153
- ↑ O'Reilly v State Bank of Victoria (1983) 153 CLR 1 per Brennan J.
- ↑ Huth v Clarke (1890) 25 QBD 391 at 395 per Wills J.