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An assignment refers to the transfer of the rights of one party under a contract to a third party. For example, John sold his car to Jack for $5000. John can then assign his right to collect payment to his son Johan. Contract delegation on the other hand refers to the transfer of duties from one party to another. This can often be seen when contractors hire subcontractors to handle different parts of their contracted work.

Most contract rights ca be assigned but there are some exceptions. These are:

• Contracts where the right is of a personal nature. For example, Maria has a contract with Mandy to provide personal care for her grandmother. Mandy cannot transfer this contract to Manuel because the care required by each individual is personal and different.
• Contracts with a clause stating that the rights are non-assignable.
• When the assignment will change the risks or duties required by the contract. For instance, if I signed a landscaping contract with Jane to maintain her yard, she can't assign it to her sister in a different state with a larger property.
• The assignment is prohibited by law. The law in many Juridictions prohibits the assignment of future wages to another party.

Discharge of contract means that the parties under contract are no longer liable to the terms of the contract and no more promises can be enforced. Contract discharge can happen in several ways:

By performance: All parties have fulfilled their contractual obligations. Example, if the contract was to repair a phone for $200, and you complete the repair and receive payment the contract has been discharged.

By agreement: Both parties agree to discharge the contract.

By operation of Law: In some contracts circumstances beyond the control of the parties involved may require the intervention of the law to discharge the contract.

Cooper v. Holder

Citation.21 Utah 2d 40, 440 P.2d 15 (Supreme Court of Utah, 1968)

Holder had borrowed money from Cooper. Holder then entered into a contract with the city of Moab and assigned his earnings to Cooper. The mayor received notice of the assignment and signed that payment would be made accordingly but the payment was still made directly to Holder. When taken to court the city claimed that the mayor could not enter into any contract on the city's behalf and therefore the assignment should not hold. The court ruled that the assignment stood. This was because the requirement of proper notice is met upon serving it to an individual who can act upon it or is able to communicate it to others who are able to.