She had a contract that has received verbal approval and was going through the administrative process of finalisation. In law, that's as good as a signed contract. Now, whether the people who had made the verbal contract had the authority to do this is another question.
This isn't a censorship issue (the government isn't actually involved with a priori restraint of publication or expression) but it is a free speech issue. It just makes the university look unprofessional, disorganised, and frankly puritanical and scared of its own shadow. They certainly didn't do themselves any favours in the eyes of the public here: so they'll attract more evangelical hicks and scare away the cosmopolitan people that make a university attractive. Well done.
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