FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.7
FAR 32.705 Unenforceability of unauthorized obligations.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section warns that many supplies and services, especially information technology, come with supplier license agreements such as EULAs or Terms of Service. Some of these agreements contain indemnification clauses that conflict with Federal law and are unenforceable, and agreeing to them could violate the Anti-Deficiency Act. It matters to contractors because it signals that such unauthorized obligations cannot be enforced against the Government.
Applies to: Acquisitions of supplies or services subject to supplier license agreements
Key terms: supplier license agreements · End User License Agreement (EULA) · Terms of Service (TOS) · indemnification clauses · Anti-Deficiency Act
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Many supplies or services are acquired subject to supplier license agreements. These are particularly common in information technology acquisitions, but they may apply to any supply or service. For example, computer software and services delivered through the internet (web services) are often subject to license agreements, referred to as End User License Agreements (EULA), Terms of Service (TOS), or other similar legal instruments or agreements. Many of these agreements contain indemnification clauses that are inconsistent with Federal law and unenforceable, but which could create a violation of the Anti-Deficiency Act (31 U.S.C. 1341) if agreed to by the Government.
← 32.704 Limitation of cost or funds. · 32.706 Contract clauses. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.