A hotel owner contracts with a landscaping company to maintain the hotel’s gardens. The landscaping company later arranges for another company to handle the maintenance. Which of the following best describes the legal nature of this arrangement?
Subrogation
Assignment
Delegation
Novation
The correct answer is 'delegation' because the landscaping company transferred its contractual duty to perform the garden maintenance to the other company. Delegating a duty differs from assigning a right; an assignment involves transferring a contractual right (such as the right to receive payment), while delegation involves transferring a duty to perform. Here, the landscaping company retained responsibility for the performance of the duty under the contract unless otherwise agreed, making this arrangement a delegation. Options like 'assignment' are incorrect because no right was transferred, and 'novation' is incorrect as it requires all parties, including the hotel owner, to agree to replace one party to the contract with another. Such consent wasn't mentioned in the scenario.
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