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Contract Basics & Approval

What is a contract? A contract is a legally enforceable agreement, lease or license between two or more parties. In the course and scope of regular work for the University, many employees experience the need to negotiate and execute contracts that legally bind the Institution. The Approval Authority Policy is intended to provide employees with a framework for understanding the specific types of contracts, review process, signature authority and insurance required before a contract may be executed on behalf of Drake University.

The Contract Process Summary lays out the process for Independent Contractors and Business/Vendor Contracts. The Contract Review Checklist is available as a tool to review a contract for the necessary items.

Whether a document is called an Agreement, a Letter of Agreement, a Memorandum of Understanding (MOU), a Memorandum of Agreement, a Letter of Understanding, a Purchase Order or any other obligation; if it creates legal obligations on the part of Drake University and another party, it is likely a binding agreement subject to the University contracting policy.