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Division of Financial Services

Kansas State University
KFC Old Foundation Bldg.
2323 Anderson Ave.
Suite 500
Manhattan, KS 66502
785-532-5577 fax

Commonly Used Terms

Amendment to Lease – a supplement, revision, or addition to a lease

Brand Name or Equal Specification – the use of a brand name and model number to identify/define the standard of quality, performance and other factors required by the RFQ allowing for an equivalent from any manufacturer

Consultant – agreement established with a company or individual for knowledge/expertise or work on a specific project, usually involving a memorandum of agreement

KSU Surplus Property – University web site used to post items no longer needed by one department for other departments to view and possibly use before disposing of the property

Emergency Purchase – necessary purchase when time does not allow for competitive purchasing procedures because of a threat to health, welfare, safety or agency operations that must be resolved immediately

Entertainers, Lecturers, Speakers – contracts established with a company or talent agency for services (i.e. singers, touring companies, etc.) and a written contract approved by Purchasing is required

Federal Surplus Property – program that encourages reutilization of excess federal property sold to state agencies at a discounted price

FOB (free on board) – delineates ownership of purchased/sold goods while in transit.
                FOB Origin – buyer owns goods in transit
                FOB Destination – buyer owns good at destination

Freight Prepaid and Allowed – freight charges paid by the shipper and included in the cost of the goods

Freight Prepaid and Added – freight charges paid by the shipper are added to the invoice

Honorariums – a fee or gift paid to an individual as a thank you for time and effort, usually under $500

Lease – legal contract between the lessee and lessor agree to the use of property in exchange for a fee

Lease Term – specified duration of a lease

Lease to Own/Purchase – agreement between lessee and lessor for the use of property in return for a fee, with the understanding that the lessee may purchase the property outright at a specified time by paying an additional sum

Lease-Purchase Agreement – an agreement where lease payments, either in whole or in part, are applied to an overall purchase price

Lessee – the party paying to use property (i.e. equipment, land, etc.); tenant

Lessor – the party who owns the property being leased and has the authority to set up a lease

Premises – property which is leased (i.e. building or any part thereof)

State of Kansas Surplus Property – program that encourages reutilization of excess state property