What Is a Price Quotation?
A price quotation (or sales estimate) is a formal commercial document provided by a supplier to a prospective client detailing deliverables, costs, timelines, and payment terms before work commences.
When Should You Issue a Quotation?
Quotations are submitted during the sales discovery and proposal phase to set explicit budgetary expectations.
Statutory & Official Legal Sources
Verified Statutory SourceThe statutory authorities, official regulatory codes, and public legal sources referenced by this document are itemized below for compliance and informational transparency; does not constitute formal attorney-client legal counsel.
Uniform Commercial Code (UCC) § 2-205 – Firm Offers & Price Quotations
Legal Information Institute (Cornell Law School)UCC § 2-205 (Firm Offers: an offer by a merchant to buy or sell goods in a signed writing)
Commercial price estimate and proposal draft.
Essential Quotation Elements
- Clear item descriptions, quantities, and unit rates.
- Defined expiration date or validity window.
- Pre-tax discount and statutory tax breakdowns.
Quotation Checklist
- Confirm that banking details and milestones are realistic.
- Verify line item arithmetic before transmitting.
Quotation to Invoice Workflow
- 1
Enter Parties & Deliverables
Fill company details and list itemized goods or services.
- 2
Set Terms & Discounts
Configure currency, validity days, and applicable discount rates.
- 3
Export or Convert
Download as vector PDF or convert directly to an invoice draft upon client sign-off.
Frequently Asked Questions
Is a price quotation legally binding?
Once accepted in writing by the client within the validity period, a quotation typically forms a binding agreement for the specified scope and pricing.
This document is a commercial estimate and quote draft. It does not replace statutory tax invoices.