Let $X$ be a smooth algebraic surface over $\mathbb{C}$, and $Y \xrightarrow{\phi} X$ the blowup at a (reduced) point with exceptional divisor $E$. Then, the we have the following universal property: Every morphism from $Y$ to an algebraic variety $Z$ that contracts $E$ to a point factors through $X$ (Beauville, Algebraic Surfaces p.17) I'm not sure to think of this (univ. prop. of blow. down) as a property of smooth surfaces over $\mathbb{C}$ or more generally. Here are some natural questions come to mind:

Is there a more general universal property of blowing down along these lines. I don't expect there to be an answer for arbitrary blowups (say of noeth. schemes), however I would like to replace the field $\mathbb{C}$ by other algebraically closed fields like $\overline{\mathbb{F}_p}$, and if the formalism allows it, even $\mathbb{Q}$. There are a couple of cases:

1.) I can't even figure out a universal property if we stay in the context schemes smooth over $\mathbb{C}$, and blow-up at smooth, irreducible subvarieties $Z$.

2.) Let $X, Y, \phi, E$ as above (in particular, surfaces). Assume that $X$ is reduced, but possibly singular, and allow $\phi$ to be a blow-up at an arbitrary (possibly non-reduced) point. Is there a universal property that blowing-down along the exceptional divisor satisfies in this case? (The way I see it, one issue is to replace "collapsing $E$ to a point" by something else.)

3.) I'm very much interested in the most general version of the universal property one can formulate. If there is a reference where this is covered (EGA?) I would love to see it. I also don't have "good" reasons to believe that a universal property doesn't hold in complete generality (say in the context of noetherian schemes). If you're convinced that this is the case, I'd love to hear your reasoning.

along these lines" - I love it!) For (1), it seems like the thing to realize is that $E$ comes as a (projective space) bundle over $Z$, and instead of saying "any map that contracts $E$ to a point" we'd say "any map that contracts each of these subvarieties of $E$ to points". It's easy to miss that extra structure when $Z$ is itself a point. – Allen Knutson Jan 23 '13 at 4:47anytarget scheme $Z$; normality ensures $O_X = f_{\ast}(O_Y)$) – user30379 Jan 23 '13 at 12:28