Update. Still can't find the contract, but I'm still looking.
Did finally manage to talk to our IT guys this morning. Story is still the same. I am still responsible for the repairs, and if it cannot be fixed I will have to buy out the lease on it, the amount of which he is going to get back to me with. I said to him, that when I got this laptop, even though it was one of the newer ones issued, mine had been used previously, and he said it didn't matter, it was the same price (which he will let me know). I also asked was it not covered under any warranty, and he said yes, but not if I (or a client) spilled water on it. SO the lesson learned here is, that I am being nailed for admitting water got on it one way or another, and I should have lied and said it just died. Now the reason I didn't do that, as Elvis had suggested..sorry
...was because I thought they would find water damage when they looked at it ( I don't know how that works, like I said I know nothing about hardware...maybe some of the techies can tell us if you can tell if something like water has been spilled on a laptop, as, unlike pop or something it won't leave a sticky residue). If we know that you can't tell if water got into something, then my moral dilemma of a few days is gone and I sugesst you lie, plead ignorance, and claim your laptop just died. The only concession I got this morning was that rather than them placing a service call (billed to me) of where they wanted me to go, that I can take it elsewhere first and see if I can get something done myself seeing as I will effectively own it. The other fabulous news is, they had started switching all the mobile people over to desktops in their homes, and the only reason I still had a laptop was that it was one of the newer issues. Now that it has to be replaced, it will be replaced by a desktop...which sucks, as I like to work all over my house or bring the laptop to clients houses etc.
Thanks to everyone for suggestions, support ...nice to know I am not the only one who finds this ridiculous, and hopefully people will find this very educational when it comes to signing hardware contracts with your employer. I'll keep you posted on how it works out.