Certified Texas Contract Manager Practice Exam

What does assignment of contractor refer to in a contract?

1. Termination of a contractor's duties

2. Transferring rights under a contract to another party

3. Increasing the contract sum

4. Modifying the contract duration

The correct answer is: Transferring rights under a contract to another party

The assignment of contractor refers specifically to the process in which rights or benefits under a contract are transferred from one party to another. This is a common practice in contract management and can occur for various reasons, such as financial considerations, resource management, or changes in project scope. By transferring these rights, the new party becomes entitled to the benefits or obligations outlined in the original agreement, although there may be conditions or approvals required as per the contract terms. In this context, the concept does not relate to termination of duties, which involves canceling the contractor's responsibilities rather than transferring them. Likewise, it does not pertain to increasing the contract sum or modifying the contract duration, as these actions involve changes to the financial aspects or timeframes of the contract rather than the transfer of rights.