Sale of university in process (7)
I believe the answer is:
auction
'sale' is the definition.
(I've seen this before)
'university in process' is the wordplay.
'university' becomes 'u' (abbreviation for university).
'in' is an insertion indicator.
'process' becomes 'action' (action is a kind of process).
'u' inserted inside 'action' is 'AUCTION'.
'of' acts as a link.
(Other definitions for auction that I've seen before include "Offer to bidders" , "Selling" , "Occasion of lots under the gavel" , "Use caution at public sale" , "Competitive sale" .)