The only thing that is not true about Project Charter is that it is used only to award a contract or the phase of a project. If you are not too familiar with what Project Charter is, this refers to the different goals and responsibilities that can be given by the project manager.
Take note that the goals, responsibilities, and so much more that will be placed into a project should be clear and detailed. If not, it may be harder for the rest of the team in order to complete the project. Take note that the scope of the project may also be available here.