Offer vs. Quotation — What's the Difference?
Edited by Tayyaba Rehman — By Urooj Arif — Updated on April 6, 2024
An offer is a proposal by a seller to provide goods or services at specified terms, while a quotation is an estimated price given for specific goods or services.
Difference Between Offer and Quotation
Table of Contents
ADVERTISEMENT
Key Differences
An offer is a formal proposal made by a seller or service provider to sell goods or services under specified conditions and often within a certain timeframe. This becomes legally binding if accepted by the buyer. On the other hand, a quotation is a document or statement providing a potential price for the supply of goods or services, typically not binding until an order is placed or an offer is made based on it.
While an offer may include detailed terms of sale, such as delivery dates, payment terms, and quantities, a quotation mainly focuses on pricing based on the current cost of goods or services. The detailed terms of sale might not be fully outlined until further negotiation or until an offer is formally made after a quotation is accepted.
Offers are often made in response to a request from a potential buyer and can lead directly to a contractual agreement once accepted. Conversely, quotations are usually given upon request by a customer looking to understand the cost of goods or services before making a purchasing decision, serving as a preliminary step before any formal offer or contract.
In terms of validity, an offer must be accepted before it expires or is withdrawn by the issuer to create a binding contract. Quotations, however, are often valid for a specific period, indicating how long the prices are guaranteed, but acceptance of a quotation itself does not constitute a binding contract until an official order is placed or an offer based on the quotation is accepted.
Offers and quotations are used differently across industries. In sectors like construction or bespoke manufacturing, quotations are frequently used for detailed cost breakdowns before an offer is made. In retail or standardized services, offers might be more commonly presented directly to customers to facilitate quick purchase decisions.
ADVERTISEMENT
Comparison Chart
Definition
A proposal to sell goods or services under specified conditions.
An estimate of the price for goods or services.
Legality
Becomes legally binding if accepted.
Not binding until an order is placed or an offer is made and accepted.
Focus
Terms of sale including delivery, payment, and quantities.
Primarily focuses on pricing and cost.
Validity
Must be accepted before it expires or is withdrawn.
Valid for a specific period but acceptance alone does not create a contract.
Usage
Directly leads to a contractual agreement once accepted.
Used for preliminary cost evaluation before formal negotiations or orders.
Compare with Definitions
Offer
Often includes detailed sale terms.
The offer included terms for early payment discounts and delivery schedules.
Quotation
Used for preliminary budgeting and planning.
The event planner sent a quotation for all the services we discussed.
Offer
A formal proposal to sell goods or services under specific terms.
The company made an offer to supply 100 units at a discounted rate.
Quotation
Typically valid for a certain period.
The quotation is valid for 15 days, giving us time to decide.
Offer
Used across various industries to initiate sales.
The software company made an attractive offer for their annual subscription plan.
Quotation
Often a step before formal negotiations.
After reviewing the quotation, we decided to proceed with a formal offer.
Offer
Expires after a set period if not accepted.
The offer is valid for 30 days, after which it will be withdrawn.
Quotation
Provides potential costs but is not binding.
The quotation was higher than expected, prompting us to request discounts.
Offer
Can lead directly to a contract if accepted.
After reviewing, the client accepted the offer, making it a legally binding agreement.
Quotation
An estimated price for specific goods or services.
We received a quotation for the office renovation project.
Offer
To present for acceptance or rejection; proffer
Offered me a drink.
Quotation
A quotation is the repetition of a sentence, phrase, or passage from speech or text that someone has said or written. In oral speech, it is the representation of an utterance (i.e.
Offer
To put forward for consideration; propose
Offer an opinion.
Quotation
The act of quoting.
Offer
To present in order to meet a need or satisfy a requirement
Offered new statistics in order to facilitate the decision-making process.
Quotation
A passage quoted.
Offer
To present as an act of worship
Offer a prayer.
Quotation
An explicit reference or allusion in an artistic work to a passage or element from another, usually well-known work
"Direct quotations from other paintings are fairly sparse" (Robert Hughes).
Offer
To propose as payment; bid
Offered only half what I was asking for the car.
Quotation
The quoting of current prices and bids for securities and goods.
Offer
To make available; afford
The situation offers us the opportunity to learn more.
Quotation
The prices or bids cited.
Offer
To present for sale
Those boots are being offered at half price.
Quotation
A fragment of a human expression that is repeated by somebody else, for example from literature or a famous speech.
Offer
To provide; furnish
A hotel that offers conference facilities.
Quotation
A price that has been quoted for buying or selling.
Let's get a quotation for repairing the roof before we decide whether it's worth doing.
Offer
To exhibit readiness or desire (to do something); volunteer
Offered to carry the packages.
Quotation
The act of setting a price.
Offer
To engage in; put up
Partisans who offered strong resistance to the invaders.
Quotation
(obsolete) A quota, a share.
Offer
To threaten
Offered to leave without them if they didn't hurry.
Quotation
The act of quoting or citing.
Offer
To produce or introduce on the stage
The repertory group is offering two new plays this season.
Quotation
That which is quoted or cited; a part of a book or writing named, repeated, or adduced as evidence or illustration.
Offer
To present an offering in worship or devotion.
Quotation
The naming or publishing of the current price of stocks, bonds, or any commodity; also, the price named.
Offer
To make an offer or proposal, especially of marriage.
Quotation
Quota; share.
Offer
To present itself
"This plan was dropped, because of its risk, and because a better offered" (T.E. Lawrence).
Quotation
A piece of hollow type metal, lower than type, and measuring two or more pica ems in length and breadth, used in the blank spaces at the beginning and end of chapters, etc.
Offer
(Baseball) To swing at a pitch. Used of a batter.
Quotation
A short note recognizing a source of information or of a quoted passage;
The student's essay failed to list several important citations
The acknowledgments are usually printed at the front of a book
The article includes mention of similar clinical cases
Offer
The act of offering
An offer of assistance.
Quotation
A passage or expression that is quoted or cited
Offer
Something, such as a suggestion, proposal, bid, or recommendation, that is offered
Did you accept his offer for the car?.
Quotation
A statement of the current market price of a security or commodity
Offer
(Law) A proposal that if accepted constitutes a legally binding contract.
Quotation
The practice of quoting from books or plays etc.;
Since he lacks originality he must rely on quotation
Offer
The condition of being offered, especially for sale
Thousands of bushels of wheat on offer.
Offer
A proposal that has been made.
What's in his offer?
I decline your offer to contract.
Offer
Something put forth, bid, proffered or tendered.
His offer was $3.50 per share.
Offer
(legal) An invitation to enter into a binding contract communicated to another party which contains terms sufficiently definite to create an enforceable contract if the other party accepts the invitation.
His first letter was not a real offer, but an attempt to determine interest.
Offer
(used in combinations from phrasal verbs) agent noun of off
Offer
(intransitive) To propose or express one's willingness (to do something).
She offered to help with her homework.
Offer
(transitive) To present in words; to proffer; to make a proposal of; to suggest.
Everybody offered an opinion.
Offer
(transitive) To place at someone’s disposal; to present (something) to be either accepted or turned down.
He offered use of his car for the week.
He offered his good will for the Councilman's vote.
Offer
(transitive) To present (something) to God or gods as a gesture of worship, or for a sacrifice.
Offer
To place (something) in a position where it can be added to an existing mechanical assembly.
Offer
(transitive) To bid, as a price, reward, or wages.
I offered twenty dollars for it. The company is offering a salary of £30,000 a year.
Offer
(intransitive) To happen, to present itself.
Offer
(obsolete) To make an attempt; typically used with at.
Offer
(transitive) To put in opposition to; to manifest in an offensive or defensive way; to threaten.
To offer violence to somebody
The peasants offered no resistance as they were rounded up.
Offer
To present, as an act of worship; to immolate; to sacrifice; to present in prayer or devotion; - often with up.
Thou shalt offer every day a bullock for a sin offering for atonement.
A holy priesthood to offer up spiritual sacrifices.
Offer
To bring to or before; to hold out to; to present for acceptance or rejection; as, to offer a present, or a bribe; to offer one's self in marriage.
I offer thee three things.
Offer
To present in words; to proffer; to make a proposal of; to suggest; as, to offer an opinion. With the infinitive as an objective: To make an offer; to declare one's willingness; as, he offered to help me.
Offer
To attempt; to undertake.
All that offer to defend him.
Offer
To bid, as a price, reward, or wages; as, to offer a guinea for a ring; to offer a salary or reward.
Offer
To put in opposition to; to manifest in an offensive way; to threaten; as, to offer violence, attack, etc.
Offer
To present itself; to be at hand.
The occasion offers, and the youth complies.
Offer
To make an attempt; to make an essay or a trial; - used with at.
He would be offering at the shepherd's voice.
I will not offer at that I can not master.
Offer
The act of offering, bringing forward, proposing, or bidding; a proffer; a first advance.
Offer
That which is offered or brought forward; a proposal to be accepted or rejected; a sum offered; a bid.
When offers are disdained, and love denied.
Offer
Attempt; endeavor; essay; as, he made an offer to catch the ball.
Offer
The verbal act of offering;
A generous offer of assistance
Offer
Something offered (as a proposal or bid);
Noteworthy new offerings for investors included several index funds
Offer
A usually brief attempt;
He took a crack at it
I gave it a whirl
Offer
Make available or accessible, provide or furnish;
The conference center offers a health spa
The hotel offers private meeting rooms
Offer
Present for acceptance or rejection;
She offered us all a cold drink
Offer
Agree freely;
She volunteered to drive the old lady home
I offered to help with the dishes but the hostess would not hear of it
Offer
Put forward for consideration;
He offered his opinion
Offer
Offer verbally;
Extend my greetings
He offered his sympathy
Offer
Make available for sale;
The stores are offering specials on sweaters this week
Offer
Propose a payment;
The Swiss dealer offered $2 million for the painting
Offer
Produce or introduce on the stage;
The Shakespeare Company is offering `King Lear' this month
Offer
Present as an act of worship;
Offer prayers to the gods
Offer
Mount or put up;
Put up a good fight
Offer resistance
Offer
Make available; provide;
Extend a loan
The bank offers a good deal on new mortgages
Offer
Ask (someone) to marry you;
He popped the question on Sunday night
She proposed marriage to the man she had known for only two months
The old bachelor finally declared himself to the young woman
Offer
Threaten to do something;
I offered to leave the committee if they did not accept my proposal
Common Curiosities
What is the key difference between an offer and a quotation?
The key difference is that an offer is a formal proposal that can become a contract if accepted, while a quotation is an estimate of costs that is not binding.
Can a quotation lead to a contractual agreement?
Yes, but indirectly; a quotation must be followed by an offer and acceptance to form a contract.
Can the terms in an offer be negotiated?
Yes, terms in an offer can be negotiated until both parties reach an agreement.
Is a quotation the same as an estimate?
Yes, in many contexts, a quotation is considered an estimate of the cost for goods or services.
Can a customer reject an offer after a quotation is accepted?
Yes, since a quotation itself doesn’t form a contract, a customer can reject an offer made after a quotation is accepted.
What details are included in a quotation?
A quotation typically includes the price, specifications of goods or services, validity period, and sometimes terms and conditions.
Is an offer legally binding upon issuance?
An offer becomes legally binding only after it is accepted by the other party.
How specific is an offer compared to a quotation?
An offer is more specific as it includes comprehensive terms of the sale, while a quotation mainly focuses on pricing.
How long is a quotation valid?
The validity of a quotation varies and is determined by the issuer, typically ranging from a few days to several weeks.
Do all industries use offers and quotations?
Most industries use offers and quotations, but their usage and importance can vary significantly.
Can either party withdraw an offer or quotation?
Yes, an offer can be withdrawn before acceptance, and a quotation can be revised or withdrawn within its validity period.
What happens if a quotation is accepted?
Acceptance of a quotation usually leads to the issuance of an offer based on the quoted price, which can then be accepted to form a contract.
Why do businesses provide quotations?
Businesses provide quotations to give potential customers an idea of the cost involved before committing to a purchase or contract.
Are digital offers and quotations legally valid?
Yes, digital offers and quotations are legally valid if they meet the criteria for contractual agreements.
What is the role of negotiation in offers and quotations?
Negotiation can play a crucial role in both; it can adjust the terms of an offer or the details/pricing in a quotation before a contract is finalized.
Share Your Discovery
Previous Comparison
Diabolical vs. Evil
Next Comparison
Buddhism vs. JainismAuthor Spotlight
Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
