A contract can be referred to by various names, such as an Agreement, Settlement, Commitment, Warranty, Reservation, or Deposit. It is also possible for a contract to have no title and still be binding. The wording of the contract is what matters, not its title.
In some cases, a signature is not necessary. This is particularly true when ordering online. While online shopping is convenient, it’s important to be cautious when reserving venues or placing orders to avoid unintentionally entering into a contract.
A contract is a legally binding agreement between two or more parties.
An online reservation confirms that on a specific date and time, Group A will use a space owned by Group B. In exchange for the payment made by Group A to reserve the space, Group B agrees not to allow any other group to use that space during the reserved time. This arrangement constitutes a contract. If you click to accept, sign, reserve, confirm, or pay, you are essentially “signing” that contract.
Here are some things that you should know.
- The Board of Trustees for The University of Alabama only allows certain individuals to enter into agreements on behalf of the University. Most reservation documents include a statement in which you confirm that you are an “authorized representative” of the renter. If you are not authorized by the Board of Trustees to enter into agreements for the University, you will be signing a contract for which you may be held personally liable.
- State law prohibits the prepayment of the full amount for an event in advance. According to Article IV, § 93 of the Constitution of Alabama, as amended by Amendment 58, the state is not allowed to lend its money or credit. The Attorney General has stated that such payments effectively lend the state’s money or credit until the other party has fulfilled their contractual obligations (e.g., hosting the event). Therefore, when making online reservations, you should avoid paying the full amount in advance of the event.
- As a state institution, the University is not as free as private companies or individuals to agree to contract terms. Contract Management is responsible for negotiating agreements that adhere to Alabama law and University policies. To initiate the negotiation process and obtain the necessary authorized signature, please submit agreements through the Procurement Contract Portal.
If you are unsure whether specific language creates a binding contract, check with Contract Management for guidance at (205) 348-7840.