Contracting on Behalf of the University

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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. He, in turn, has redelegated that authority as follows:

Procurement (http://www.bsrvm.berkeley.edu/procure/) has the delegation to execute purchase contracts and standard purchase orders for goods and services to be supplied to the University.

The Business Contracts Office (http://www.bsrvm.berkeley.edu/procure/) has the delegation to execute contracts associated with business relationships, non-common goods and services, strategic alliances, intellectual property and copyright agreements.

The Real Estate Services Office (http://www.bsrvm.berkeley.edu/reso/resoweb/homepg.htm) has the delegation to execute real property rental agreements (leases).

The Office of Technology Licensing (http://otl.berkeley.edu/) has the delegation to market and license UC Berkeley patents, tangible material and software.

The Sponsored Projects Office (http://www.spo.berkeley.edu/) has the delegation to solicit and accept or execute extramural grants and contracts.

University Relations (http://www.urel.berkeley.edu/) has the delegation to solicit and accept gifts.

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 (http://ola.chance.berkeley.edu/) is available to review contracts for legal form prior to execution. Risk Management (http://fbs.berkeley.edu/RISK/) 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:

Business Contracts
Delegation of Authority
Research Grants and Contracts