Some purchases can be very simple and don’t require a written contract. Buying tools or goods off the shelf at a store requires only a receipt or evidence of the purchase if you need to return it. That’s close to how purchase order (PO) terms work at Princeton when you buy simple, off-the-shelf goods. No written contract is needed, and PO terms and procurement payment processes protect your purchase if there is a problem. This is because PO terms provide a period of time for you to receive, inspect and accept your purchase before payment is remitted. But sometimes a written contract is necessary.

For University purchases of customized goods and services (including software), procurement services recommends using a University standard contract to ensure that you get what you bargained for. We do not recommend (1) signing a supplier’s contract, (2) paying in advance, or (3) using a credit card for University purchases. Why? Supplier contracts are designed to protect the supplier; paying in advance causes you to lose leverage if there is a problem with the purchase; and credit card purchases do not provide any guarantees for your purchase if there is a disagreement with the supplier. It is much more difficult to attempt to get money back than it is to withhold payment. Clear contract language helps to mitigate the potential for future disputes, and University standard contracts are both clear and fair.

See the “Decision Tree: Do I Need a Written Contract” and direct any questions to [email protected].