Contracting Authority Policy.
The Drew University Contracting Authority Policy is established to identify clearly which University personnel have the authority to sign agreements and commit the University to a contractual obligation. This policy applies to all University employees, employees of contractors working at the University, subcontractors, alumni, students and any other individuals involved in University business. The Contracting Authority Policy is not affected by the source of the funds involved.
A contract is defined as a legally enforceable agreement between two or more capable parties to do or refrain from doing some particular activity. A contract may be verbal or written, but it must include mutual obligations and the promised exchange of something of value. A business organization, such as Drew University, may authorize certain officers or employees to be its agents who have the authority to contractually bind the organization. It is the purpose of this policy to define which officers and employees of the University have the authority to act as agents for the University.
Individuals specifically identified in this document as agents for the University are authorized to enter into contracts on behalf of the University. No other person may obligate the University, in writing or verbally, to any contract, agreement, purchase order, memorandum of understanding, promise or any other potentially binding arrangement. Unauthorized employees, or others unlawfully making commitments in the name of Drew University, shall be held personally liable for any costs or consequences resulting from their actions.
Those authorized to sign agreements on behalf of the University are expected to consult with the Vice President of Finance and Administration concerning financial provisions and the Director of Legal Affairs concerning legal provisions. The consultation should be through a memo or email and should allow time for review.
The Board of Trustees designates the President and the Vice President for Finance and Administration as having signature authority for the University’s contracts. As such, these individuals are authorized to sign contracts on behalf of Drew University.
The University has identified certain University employees to act as agents for the University. These employees may commit the University to contractual obligations as specifically described below. This delegation does not supersede the review of purchases pursuant to University Purchasing Policy.