Perfect a point disputed by university (7)
I believe the answer is:
utopian
'perfect' is the definition.
('utopian' is associated in meaning with 'perfect')
'a point disputed by university' is the wordplay.
'disputed' indicates an anagram.
'by' means one lot of letters go next to another.
'university' becomes 'u'.
'a'+'point'='apoint'
'apoint' with letters rearranged gives 'topian'.
'topian' after 'u' is 'UTOPIAN'.
(Other definitions for utopian that I've seen before include "in a dreamy state" , "Ideal; imaginary" , "Citizens of Thomas More's perfect country" , "Just perfect, as in Thomas More's ideal country" , "Perfect (state)" .)