The entire institution is bound no matter who signs the license. This is why someone well placed in the organization must review licenses. It is important to find out who is expected to sign such agreements at your institution. Negotiation is usually part of handling licensing agreements. Such issues as the possibility of remote use, networking options, number of simultaneous users, whether off campus access is allowed are all to be determined.
Many contracts waive warranties.
The library must have assurance that the vendor has the right to distribute the data. Consortial licensing should be investigated as this often provides discounts. Selectors will need to be aware of these terms in order to understand how they best relate to the local institution's needs.