Phoenix Construction signs a contract with the Owens family to build a custom home. After framing begins, Phoenix hires a separate framing subcontractor to perform that portion of the work. The Owens family is not asked to consent to a substitution and does not release Phoenix from any obligation. The subcontractor abandons the job partway through, leaving exposed framing. The Owens family wants to know which legal arrangement determines whether they may still pursue Phoenix for completion of the framing work. Which mechanism describes what Phoenix did when it shifted the framing performance to the subcontractor?
Correct Answer
A) Delegation
Phoenix transferred performance of the framing duty to a subcontractor without obtaining the Owens family's consent to substitute parties. Because no novation occurred, Phoenix remains on the hook for performance — exactly the consequence of a delegation of duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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