A contract is an agreement between two parties. It is a good business practice to reduce the agreement to writing. At the very least, the contract should contain these essential elements:
Some thought should be given to whether any liability issues need to be added. In most circumstances, the contract will always be governed by Texas law. In preparing grant contracts, special consideration should be given to clauses which protect intellectual property.
The University cannot agree to any indemnity clauses. As an entity of the state, indemnification is prohibited by law. University insurance is limited and consideration should be given as to whether the other party should provide insurance coverage. Attorney General Opinion re indemnification.
The steps for approval of contracts by the University are as follows:
It is the responsibility of the originating department to maintain a fully executed copy of all contracts.