Contracting on Behalf of the University

The Chancellor has been delegated the authority to execute the various agreements required with outside organizations, agencies, and individuals to implement approved programs and activities, whether the University is the supplier or recipient of the service covered by the agreement. She, in turn, has redelegated that authority as follows:

A contract is a legally binding agreement between two parties which obliges each party to do, or not to do, a certain thing. The term "contract" encompasses all agreements intended to be binding between the parties, whether they are called contracts, agreements, memoranda of understanding, etc. Even oral agreements can be legally binding.

All contracts must be executed in accordance with the applicable University policies and procedures governing the particular transaction, including but not limited to Business and Finance Bulletins, University policies, and relevant guidelines issued by the appropriate functional areas within the Office of the President. University Counsel is available to review contracts for legal form prior to execution. Risk Services must approve the indemnification and insurance clauses to insure that they are acceptable to the University.

Administrative officials are not authorized to execute contracts without a formal written delegation except as a result of administrative responsibilities specifically outlined in University policies, such as the Academic Personnel Manual or a Business and Finance Bulletin. The University is under no obligation to honor unauthorized commitments. In certain circumstances, the University may stand behind an unauthorized agreement if it is clearly in the best interest of the University. Administrative officials who enter into agreements that are not within the scope of their authority may be personally liable for the unauthorized commitment.

Related Sections in this Guide: