What type of contract exists when one party's obligations are fulfilled by another's performance?

The type of contract where one party's obligations are fulfilled by another's performance is referred to as a delegated contract. In this arrangement, one party, known as the delegator, assigns their duties and responsibilities to another person or entity, known as the delegatee, who agrees to perform those duties. This type of contract is common in various scenarios, such as in construction, where a contractor may delegate specific tasks to subcontractors.

In a delegated contract, while the delegatee performs the tasks, the original party retains ultimate responsibility for the completion of the obligations in the contract. This concept is essential in legal and business contexts, providing flexibility in how obligations can be met.

The remaining types do not accurately describe this relationship: an implied contract arises from the actions or circumstances rather than a formal agreement; a performance bond is a guarantee that a contractor will fulfill their obligations but does not involve delegation of duties; and a specific contract is one that outlines clearly defined terms and conditions but does not inherently relate to the concept of delegation. Thus, a delegated contract is the correct term for the described scenario.