Quotations letter writing- A quotation is not an “offer” in the legal sense that it is a promise to supply goods on the terms stated. If, therefore, a seller quotes and later decides not to sell, the buyer has no legal remedy. But in practice a supplier will not risk his reputation by quoting for goods he cannot or does not intend to supply.
A satisfactory quotation will include the following:
- An expression of thanks for the enquiry
- Details of prices, discounts and terms of payment;
- A statement or clear indication of what the prices cover (e.g. packing, carriage and insurance);
- An undertaking as to date of delivery;
- The period for which the quotation is valid. It will conclude with:
- An expression of hope that the quotation will be accepted.
When asking for a quotation, the buyer must be careful to protect himself by stating clearly whether the prices are to include such additional charges as carriage and insurance. Failure to do this may lead to serious disagreement, especially where these charges are heavy, as in foreign trade dealings.