Who can sue the obligor for performance in a delegation context?

• A. The Delegating Party, or the Delegate who gets Consideration
• B. The Obligee
• C. Only the Delegate
• D. The Third-Party Beneficiary

Answer: (A)

In delegation, the duty to perform is handed from the original promisor to a substitute performer, but the person who can enforce performance against the obligor is the party who created that delegation or the substitute who is compensated to perform. The delegating party retains a right to sue the obligor if the delegated duty is not performed, because they still have the contractual relationship with the obligor. If the delegate receives consideration for taking on the duty, a separate enforceable arrangement exists between the obligor and the delegate, giving the delegate a standing to pursue performance as well. The obligee and any third-party beneficiary generally don’t gain direct standing to sue the obligor in this setup unless there is a direct promise or a novation creating privity with them.