So, you’ve got a contract, and things are moving along. But what happens when someone wants to hand off their responsibilities or take on someone else’s rights? That’s where assignment and delegation come into play in contract law. It’s basically about transferring contractual rights and duties from one party to another. It sounds simple enough, but trust me, there are a lot of little details and rules to keep in mind. We’ll break down what assignment delegation contract rights mean and how they actually work in practice.
Key Takeaways
- Contracts involve specific rights and duties. Understanding these is key before any assignment or delegation.
- Assignment is about transferring rights, while delegation is about transferring duties. They aren’t the same thing.
- Not all contract rights or duties can be assigned or delegated. Personal service contracts and certain clauses can restrict transfers.
- Proper notice to the person who owes the duty (the obligor) is important after an assignment or delegation.
- There can be legal consequences if an assignment or delegation is done incorrectly, affecting the original parties and the new party.
Understanding Contractual Rights and Obligations
Before we get into the nitty-gritty of assigning or delegating parts of a contract, it’s super important to get a handle on what a contract actually is and what it means for the people involved. Think of a contract as a formal agreement, a set of promises that the law will back up. If someone doesn’t hold up their end of the bargain, there are usually consequences.
Elements of a Valid Contract
For any agreement to be considered a legally binding contract, a few key pieces need to be in place. Without these, you might just have a casual understanding, not something enforceable in court. These elements form the bedrock of contractual relationships.
- Offer: One party has to propose specific terms to another.
- Acceptance: The other party has to agree to those exact terms, no
The Nature of Assignment in Contract Law
![]()
When you enter into a contract, you gain certain rights and take on certain responsibilities. Think of it like this: one party promises to do something, and the other party promises to pay for it, or perhaps do something in return. These aren’t just casual promises; they’re legally binding agreements. Assignment, in contract law, is essentially the transfer of these contractual rights from one party to another. It’s like passing along a ticket to a benefit you’re owed under the contract.
Defining Assignment of Contractual Rights
At its core, assignment means that the original party to a contract (the assignor) gives their right to receive a benefit or performance from the other party (the obligor) to a new party (the assignee). For example, if you’re owed money under a contract, you could assign that right to receive the payment to someone else. This new person, the assignee, then steps into your shoes to collect the debt. It’s a way to make contractual benefits more flexible and transferable. However, not all rights are assignable. Some might be personal in nature, or the contract itself might forbid it. Understanding the specifics of what can be transferred is key.
Distinguishing Assignment from Delegation
It’s really important not to mix up assignment with delegation. While both involve transferring something from a contract, they’re different. Assignment deals with rights – what you are entitled to receive. Delegation, on the other hand, deals with duties – what you are obligated to do. You can assign your right to receive payment, but you can delegate your duty to perform a service. The original party who delegates a duty is called the delegator, and the party who takes on the duty is the delegatee. The obligor is the one who owes the performance or payment. It’s a subtle but significant difference that affects who is responsible for what.
The Role of Third-Party Beneficiaries
Sometimes, a contract is made with the express intention of benefiting a third party – someone who isn’t one of the original contracting parties. These are called third-party beneficiaries. If the contract was specifically designed for their benefit, and they were intended to have rights under it, they might be able to sue to enforce the contract directly, even though they didn’t sign it. This is different from a simple assignment, where a party actively transfers their rights. Here, the benefit is built into the contract from the start. For instance, a life insurance policy names a beneficiary who receives the payout; that beneficiary is a third-party beneficiary. The key is the intent of the original parties to benefit that outsider.
Here’s a quick look at the differences:
| Feature | Assignment | Delegation |
|---|---|---|
| What is Transferred | Contractual Rights (what you are owed) | Contractual Duties (what you must do) |
| Original Party | Assignor | Delegator |
| New Party | Assignee | Delegatee |
| Effect | Assignee gains right to receive performance | Delegatee takes on obligation to perform |
It’s easy to get tangled up in the legal language, but the core idea is pretty straightforward. Think of a contract as a package of rights and responsibilities. Assignment is about passing on the rights, while delegation is about passing on the responsibilities. Both can be useful tools in business and personal dealings, but they have different rules and consequences. You can’t just hand off any old duty, and not every right can be transferred without a hitch. It’s all about the specifics of the agreement and the law. For more on how contracts work, you can check out elements of a valid contract.
Understanding these distinctions is really important because it affects who can do what and who is on the hook if something goes wrong. It’s not just about making a deal; it’s about managing the risks and benefits that come with it. This is why carefully reviewing contractual language is always a good idea before you sign anything, or before you think about transferring any part of it.
Delegation of Contractual Duties
![]()
When you enter into a contract, you take on certain responsibilities, or duties. Sometimes, you might want someone else to handle these duties for you. This is where the concept of delegation comes into play in contract law. It’s essentially asking another party to perform your side of the bargain.
Delegation allows a party to a contract to transfer their obligations to a third party. However, this isn’t always a free-for-all. There are specific rules and limitations to keep in mind.
Understanding Delegation of Duties
At its core, delegation is about transferring the responsibility for performing a contractual obligation. Think of it like this: if you hired a painter to paint your house, and you later found a different, perhaps more skilled or available, painter to do the job, you’ve delegated your duty to pay the original painter (or your duty to arrange for the painting, depending on how the contract was structured). The key is that the original party (the delegator) usually remains responsible if the delegatee fails to perform properly. It’s not a get-out-of-jail-free card for the original party.
Limitations on Duty Delegation
Not all contractual duties can be delegated. The law recognizes that some obligations are personal in nature or are so critical to the contract’s purpose that they cannot be simply handed off. Generally, duties can be delegated unless:
- The contract expressly prohibits delegation. Sometimes, the contract itself will state that duties cannot be delegated.
- The duty involves personal skill or trust. If the contract is based on a specific person’s unique talent, expertise, or the personal trust between the parties, delegation is usually not allowed. For example, if you hired a famous musician to perform at your wedding, they can’t just delegate that performance to a local cover band.
- Delegation would materially change the other party’s expectation. If delegating the duty would significantly alter what the other party bargained for, it’s likely not permissible.
Consequences of Improper Delegation
If a party improperly delegates a duty (meaning they delegate a duty that cannot be delegated, or they delegate it without following proper procedures), there can be significant consequences. The most common outcome is that the delegation is ineffective. The original party who delegated the duty remains fully liable for its performance. If the delegatee fails to perform, the non-breaching party can still sue the original obligor. In some cases, an improper delegation could even be considered a material breach of the contract itself, giving the other party grounds to terminate the agreement and seek damages. It’s important to get the elements of a valid contract right from the start to avoid these issues.
When considering delegation, always ask: Is this duty something that can be performed by anyone, or does it rely on the specific skills, reputation, or relationship with the original party? The answer to this question is often the deciding factor in whether a delegation is legally sound.
Enforceability of Contract Assignments
When you enter into a contract, you gain certain rights and take on certain responsibilities. Sometimes, you might want to transfer those rights to someone else. This is called an assignment. But can you just do that whenever you want? Not always. The enforceability of contract assignments really depends on a few key things.
When Assignment is Permitted
Generally, contract rights are assignable. Think of it like selling a ticket to an event – you’re transferring your right to attend. The law tends to favor the free transfer of rights because it keeps commerce moving. However, there are some important exceptions.
- Personal Service Contracts: If a contract is for personal services, like hiring a specific artist to paint your portrait, the right to receive those services usually can’t be assigned. The contract is based on the unique skills or relationship with the original party.
- Contracts Significantly Altering Obligor’s Duty: If assigning the right would really change the other party’s obligations or increase their risk, courts might not allow it. For example, if you have a contract to supply a specific type of rare material, assigning that right to someone who can only supply a common substitute would likely be unenforceable.
- Statutory Prohibitions: Some laws specifically prohibit the assignment of certain types of contracts or rights.
Prohibitions on Assignment
Contracts themselves can also limit assignments. These are often called "anti-assignment clauses." These clauses can be tricky. Some are very broad, trying to prevent any assignment whatsoever. Others are more specific, only prohibiting certain types of assignments or requiring consent.
Courts often look closely at these clauses to see if they clearly and unequivocally prohibit assignment. A clause that just says "This contract may not be assigned" might be interpreted narrowly, perhaps only preventing the assignment of the contract as a whole (both rights and duties), but not the assignment of rights alone. This is where things can get complicated, and understanding the specific wording is key. It’s always a good idea to review the contractual language carefully.
Impact of Anti-Assignment Clauses
What happens if you assign a contract in violation of an anti-assignment clause? It depends on the clause and the jurisdiction. Sometimes, the assignment might be considered void. Other times, the clause might just give the original party the right to sue for breach of contract, but the assignment itself could still be valid. It’s not a simple "yes" or "no" answer.
The enforceability of an anti-assignment clause often hinges on whether it’s viewed as a condition precedent to assignment or merely a covenant not to assign. If it’s a condition, a breach might invalidate the assignment. If it’s a covenant, breaching it might lead to damages but not necessarily void the transfer itself.
Understanding these nuances is important, especially if you’re dealing with agreements that involve significant obligations or potential risks, like hold harmless agreements. It’s often wise to seek legal advice when drafting or interpreting such clauses to ensure they achieve the intended effect without creating unintended consequences.
Limitations and Restrictions on Assignment
Not every contract right can be freely passed along to someone else. The law recognizes that some agreements are deeply personal or involve specific skills, and these can’t just be reassigned without a second thought. Think about it – you wouldn’t want your dental care suddenly handled by a dentist you’ve never met, just because your original dentist decided to offload their patient list. That’s where limitations and restrictions on assignment come into play.
Personal Service Contracts
These are contracts where the unique skills, talents, or personal qualities of one party are the core reason for the agreement. Because the performance is so tied to the individual, these rights and duties generally cannot be assigned or delegated. If you hire a famous artist to paint your portrait, you can’t then assign that right to have your neighbor’s portrait painted by the same artist. The artist’s personal touch is what you’re paying for.
- Unique Skills: The contract relies heavily on the specific abilities of an individual.
- Personal Trust: The relationship between the parties is based on a high degree of personal trust.
- No Substitution: The performance cannot be reasonably substituted by another party.
Contracts Prohibiting Assignment
Sometimes, the contract itself spells out that assignments are not allowed. These are often called "anti-assignment clauses." They’re pretty straightforward: they aim to keep the original parties involved and prevent unwanted third parties from stepping in. While generally enforceable, courts sometimes look closely at these clauses, especially if the restriction seems unreasonable or goes against public policy. It’s always a good idea to check the exact wording of your contract to see what it says about assignment of contract rights.
Statutory Restrictions on Assignment
Beyond what contracts say, laws themselves can limit assignments. Certain statutes might prohibit or restrict the assignment of specific types of rights or duties. For example, some government contracts or specific types of licenses might have legal limitations on who can take them over. These restrictions are in place to maintain public order, ensure regulatory compliance, or protect vulnerable parties. It’s a layer of control that operates independently of the parties’ agreement.
The Process of Assigning Contract Rights
So, you’ve got a contract, and now you want to transfer some of your rights under it to someone else. This is called assignment, and while it sounds straightforward, there are definitely some steps and rules to keep in mind. It’s not just a handshake deal; there’s a process involved to make sure everything is on the up and up.
Formal Requirements for Assignment
When you’re looking to assign your rights, the first thing to consider is how you actually do it. Most of the time, you don’t need anything super fancy. A simple written agreement is usually enough. This document, often called an "assignment agreement," clearly states that you (the assignor) are transferring your rights to another party (the assignee). It should specify exactly which rights are being transferred. While oral assignments are sometimes valid, they can be really hard to prove later on, so putting it in writing is always the smarter move. Some contracts might even have specific clauses about how assignments must be handled, so always check the original agreement first.
Notice to the Obligor
After you’ve got your assignment agreement sorted, it’s super important to let the other person in the original contract know. This is the "obligor" – the one who owes the duty or performance. You need to give them notice that the rights have been assigned. Why? Well, if you don’t tell them, they might just keep performing their duty to you, the original party. Once they’ve been notified, they are legally obligated to perform for the assignee instead. This notice prevents confusion and potential double-dealing. It’s a key step in making the assignment effective against the obligor.
Effect of Assignment on Original Parties
What happens to you and the person you originally contracted with after the assignment? Generally, when you assign your rights, you’re still on the hook if something goes wrong, especially if the contract involves duties that can’t be fully separated from the rights. Think of it this way: you’ve passed on the benefit, but the original obligations might still tie back to you. The assignee steps into your shoes to receive the benefit of the contract. However, the obligor can usually raise any defenses against the assignee that they could have raised against you before the assignment. It’s a bit like passing a baton in a relay race; the next runner takes over, but the first runner’s performance still matters for the overall outcome. Understanding contract formation and interpretation is key to knowing what rights are even assignable in the first place.
Delegating Contractual Obligations
Understanding Delegation of Duties
When you enter into a contract, you take on certain responsibilities, or duties. Sometimes, you might want someone else to handle these duties for you. This is called delegation. It’s like asking a friend to pick up your dry cleaning because you’re too busy. In contract law, delegation means one party (the delegator) transfers their contractual duties to a third party (the delegatee). The key thing to remember is that the original party who made the promise usually remains responsible if the delegatee messes up.
Limitations on Duty Delegation
Not all contractual duties can be delegated. The law puts some limits on this to make sure the other party to the contract (the obligee) gets what they bargained for. Generally, you can delegate duties that are purely mechanical or involve no special skill or personal trust. Think about delivering standard goods – that’s usually fine to delegate. However, duties that are personal in nature, require specific expertise, or are based on a unique relationship between the original parties typically cannot be delegated. For example, if you hired a famous artist to paint your portrait, you can’t delegate that job to a beginner artist without the original party’s agreement.
Here are some common situations where delegation might be restricted:
- Personal Services: Contracts for services that rely heavily on the unique skills, talent, or reputation of a specific individual. For instance, a contract with a renowned surgeon for a medical procedure.
- Special Trust or Confidence: When the contract is based on a high degree of trust between the original parties, such as certain agency or partnership agreements.
- Statutory or Public Policy Restrictions: Some laws or public policies might prohibit the delegation of certain duties, especially in regulated industries.
- Contractual Prohibition: The contract itself might explicitly state that certain duties cannot be delegated.
Consequences of Improper Delegation
So, what happens if you delegate a duty that you shouldn’t have, or if the person you delegated to doesn’t do a good job? Well, it’s usually not good news for the delegator. The original party who delegated the duty remains on the hook. If the delegatee fails to perform the duty correctly, or at all, the obligee (the person who was supposed to receive the performance) can still sue the original party (the delegator) for breach of contract. The obligee doesn’t have to accept the delegatee’s performance if it’s not what was agreed upon, especially if the duty was personal or non-delegable. It’s a bit like hiring a caterer for a wedding; if they send an inexperienced assistant who ruins the food, the couple can’t just say, "Oh well, that’s who showed up." They’ll still hold the original caterer responsible.
Legal Implications of Assignment and Delegation
When you assign your rights or delegate your duties under a contract, things can get a bit complicated legally. It’s not just a simple handshake deal anymore; there are real consequences for everyone involved. Let’s break down what happens.
Rights of the Assignee
When you assign your contractual rights to someone else, that person, the assignee, steps into your shoes to a certain extent. They gain the right to receive the benefit of the contract. For example, if you had a right to receive payment, the assignee now has that right. However, the assignee generally takes the rights subject to any defenses or claims the original obligor (the one who owes the duty) had against the assignor (you). This means if you owed the obligor money or breached a part of the contract, the obligor might be able to offset those issues against the assignee’s claim. It’s important to remember that the assignee’s rights are only as good as the rights you originally had. They also typically don’t get any greater rights than you possessed. The assignee’s ability to enforce these rights can be impacted by whether the assignment was properly made and if any notice was given to the obligor. Sometimes, the assignee might even have to deal with the original contract’s terms and conditions, not just the rights themselves. This is why understanding the original contract is so important before becoming an assignee. You can find more information on how contracts are interpreted here.
Liabilities of the Assignor
This is a big one: usually, assigning your rights doesn’t get you off the hook entirely. Unless the contract specifically states otherwise, or a novation occurs (where the original obligor agrees to release you), you, the assignor, often remain liable if the assignee fails to perform or if the obligor has a valid defense against the assignee. Think of it like this: you’ve passed on the benefit, but the responsibility might still be tied to you. If the assignee messes up, the original party might still come after you. This is especially true if the assignment was of a duty rather than just a right. The original contract is still a binding agreement, and if the new party doesn’t uphold their end, the original party looks to the person they originally contracted with. It’s a bit like being a guarantor for the assignee’s performance. The assignor might also be liable for misrepresenting the contract or the assignee’s ability to perform. This is why careful consideration is needed before making an assignment or delegation. You want to be sure that the person you’re transferring to is reliable.
Defenses Available to the Obligor
The obligor, the party who owes the performance under the contract, has a set of defenses they can use. These defenses generally fall into two categories: those that existed before the assignment or delegation and those that arise after. Before the transfer, the obligor can use any defenses they had against the original contract, such as lack of capacity, illegality, fraud, duress, mistake, or failure of consideration. They can also use defenses related to the performance itself, like if the assignor didn’t fulfill their own obligations. After the assignment, if the obligor has paid the assignor, that payment is generally valid against the assignee unless the obligor had notice of the assignment. If the obligor has a claim against the assignor that arose before they received notice of the assignment, they can usually use that claim as a set-off against the assignee. This protects the obligor from having to pay twice or from losing out on valid claims they had against the original party. It’s a way the law tries to ensure the obligor isn’t put in a worse position due to the assignment. Some contracts also include clauses that limit the obligor’s ability to raise certain defenses, but the enforceability of these can vary. For instance, clauses that try to limit liability for serious misconduct are often not upheld. Attorney’s fees provisions can also be a factor in litigation following an assignment.
Breach of Contract Following Assignment or Delegation
When a contract is assigned or its duties are delegated, things can get complicated if someone doesn’t hold up their end of the deal. It’s not always as simple as saying ‘out with the old, in with the new.’ The original parties, the new assignee, or the delegatee could all potentially be involved in a breach.
Breach by the Assignee
An assignee, the party who receives rights under a contract, generally doesn’t automatically assume the original obligations unless they explicitly agree to do so. However, if the assignee does agree to take on duties, or if the assignment itself was conditional on the assignee performing certain actions, a failure to perform could constitute a breach. This is especially true if the original contract was modified to reflect the assignee’s direct obligations. The key here is whether the assignee stepped into the shoes of the assignor regarding performance.
Breach by the Delegator
The delegator is the original party who assigned their rights or delegated their duties. If the party to whom duties were delegated (the delegatee) fails to perform, the original delegator often remains liable to the other original party (the obligee). This is because delegation typically doesn’t release the delegator from their original contractual promises unless there’s a specific novation agreement. So, if the delegatee messes up, the delegator might be on the hook. It’s a bit like co-signing a loan; if the primary borrower defaults, the co-signer is still responsible.
Remedies for Breach After Transfer
The available remedies depend heavily on who breached, what was breached, and the specific terms of the assignment or delegation. Generally, the non-breaching party can seek damages to compensate for their losses. If the breach is material, meaning it goes to the heart of the contract, the non-breaching party might be able to terminate the contract altogether. Sometimes, monetary damages aren’t enough, and a court might order specific performance, compelling a party to act as promised, though this is less common in simple assignments. Equitable relief might also be an option in certain situations.
Here’s a quick look at potential outcomes:
- Material Breach: The non-breaching party can terminate the contract and sue for damages. This is a significant failure to perform.
- Minor Breach: The non-breaching party can sue for damages related to the specific failure but usually must continue performing their own obligations.
- Anticipatory Breach: If a party clearly indicates they won’t perform before the due date, the other party can seek remedies immediately.
When rights are transferred, the assignee generally steps into the assignor’s shoes regarding those rights. However, when duties are delegated, the original obligor often remains liable if the delegatee fails to perform. Understanding this distinction is vital to knowing who can be held responsible after a contract transfer.
It’s important to remember that the specifics of the original contract and any subsequent assignment or delegation agreements will dictate the exact rights and liabilities. Reviewing the contractual language carefully is always the first step when disputes arise after a transfer.
Navigating Complex Contractual Transfers
When you’re dealing with contracts, especially when rights or duties are being moved around, things can get pretty complicated. It’s not always as simple as just signing a new paper. You’ve got to really look at what the original agreement says and what the law allows. Understanding the nuances is key to avoiding future headaches.
Reviewing Contractual Language
Before you even think about assigning a right or delegating a duty, take a close look at the original contract. What does it say about transfers? Some contracts are pretty straightforward, allowing assignments freely. Others might have specific conditions or outright prohibitions. You’ll often find clauses that restrict or require consent for any kind of transfer. It’s important to identify these early on. Sometimes, a contract might even specify how a transfer must be done, like requiring written notice or a formal amendment. Ignoring these details can lead to the transfer being invalid or even a breach of the original contract.
Seeking Legal Counsel
If the contract language is unclear, or if the situation involves significant value or risk, it’s wise to get some professional help. A lawyer can help you understand the specific terms of your contract and how they interact with the relevant laws. They can also advise on potential risks and help draft any necessary documentation. For instance, if you’re dealing with the transfer of property, understanding things like liens and easements is critical, and legal advice can clarify these aspects Transferring property involves understanding ownership types.
Understanding Jurisdiction-Specific Rules
Contract law isn’t uniform across the board. What’s permissible in one state or country might be different in another. Laws regarding assignment and delegation can vary significantly. This means that even if your contract seems clear, the local laws where the parties are located or where the contract is to be performed can impact its enforceability. It’s not just about what the contract says; it’s also about what the governing law dictates. This is especially true for complex transactions where multiple jurisdictions might be involved. Always consider the legal framework that applies to your specific situation.
Here’s a quick look at common restrictions:
- Personal Service Contracts: These often cannot be delegated because the performance is tied to the specific skills or reputation of an individual.
- Contracts Prohibiting Assignment: Explicit clauses in the contract can prevent assignment or delegation.
- Statutory Restrictions: Certain laws might prohibit assignment in specific contexts, like government contracts or certain types of licenses.
When you’re looking at transferring contractual rights or duties, remember that the original agreement is your starting point. However, it’s not the only factor. You also need to consider the applicable laws, which can significantly influence whether a transfer is valid and what happens next. It’s a bit like building something – you need both the blueprint (the contract) and the building codes (the law) to get it right.
It’s also worth noting that the validity of a contract itself relies on several core components, including a clear offer, acceptance, and consideration. If the original contract had issues, it can complicate any subsequent transfers Contracts form the basis of many business relationships.
Wrapping Up Assignments and Delegations
So, we’ve gone over how contracts can be passed around, either the rights or the duties. It’s not always a simple hand-off, though. There are rules about what you can and can’t assign or delegate, and sometimes the original contract itself will say ‘no way’ to that kind of thing. Plus, even if you pass something off, you might still be on the hook if the new person messes up, depending on the situation. It’s a lot to keep track of, and getting it wrong can lead to some real headaches down the road. Always good to check the fine print and maybe even get some advice before you decide to transfer any contractual obligations or benefits.
Frequently Asked Questions
What’s the difference between assigning a contract and delegating duties?
Think of it like this: assigning a contract means you’re passing on your *rights* to get something from someone else. Delegating duties means you’re passing on your *job* to do something for someone else. You can usually assign your rights freely, but delegating duties might have more rules, especially if the job is personal.
Can I always assign my contract rights to someone else?
Mostly, yes. But there are exceptions. If the contract itself says you can’t assign it, or if the assignment would change the other person’s job or risk in a big way, then you might not be able to. Also, some jobs are just too personal to hand over to someone else.
What happens if I delegate my duties and the new person messes up?
Uh oh. Usually, you’re still on the hook! Even if you delegate your job to someone else, the original contract is still between you and the other party. If the person you delegated to messes up, the other party can often still come after you for the mistake.
What is an anti-assignment clause?
An anti-assignment clause is a part of a contract that specifically says you *cannot* transfer your rights or duties to another person. It’s like a ‘no passing’ sign for that part of the deal.
What’s a ‘third-party beneficiary’?
A third-party beneficiary is someone who isn’t one of the main people in the contract but is meant to benefit from it. For example, if you buy a life insurance policy, your family is the third-party beneficiary who gets the money.
Do I have to tell the other person if I assign my rights?
It’s a really good idea to let the person who owes you something (the obligor) know that you’ve assigned your rights. If you don’t tell them, they might accidentally pay or perform for the wrong person, and it could get messy.
What are ‘personal service contracts’ and why can’t they usually be delegated?
Personal service contracts are jobs that rely heavily on the specific skills, talent, or trust you have with the other person. Think of hiring a famous artist to paint your portrait or a specific lawyer for your case. Because it’s about *you* doing the job, you usually can’t delegate it to someone else.
What’s the difference between delegation and novation?
Delegation is like asking someone else to do your chore, but you’re still responsible if they don’t do it right. Novation is like getting everyone to agree that the new person completely takes your place. The original contract is canceled, and a new one is formed with the new person, releasing you from all responsibility.
