The definition, the UK and US rules on when a quote binds you, and a layout you can copy
A quote, or quotation, is a formal offer to supply specific goods or services at a fixed price, on stated terms, for a limited time. Both words mean the same document. Quote is the everyday form and quotation the more formal one, in the US and the UK alike. What separates a quote from a price list or a rough estimate is that the client can say yes to it, and once they do you usually have a binding contract.
What is a quote in business?
In business, a quote is the document a supplier sends before any work starts, telling a prospective client exactly what they will get and what it will cost. Official guidance for UK businesses describes a quotation as normally a fixed price, whereas an estimate is generally a rough guess of what the work would cost (Business Companion, the government-funded Trading Standards guidance). That fixed price lets the client compare suppliers and accept knowing the number will not move.
What is the difference between a quote, an estimate, a proposal and an invoice?
All four carry a price, but they belong to different moments in a sale and carry different legal weight.
Quote or quotation: a fixed price for a defined scope, valid until a set date. It is an offer, so acceptance usually creates a contract
Estimate: an approximate price, often given before a site visit. The UK Trading Standards guide Contract law basics says an estimate is not usually an offer because it rests on incomplete information, and should say clearly that it is an approximation
Proposal: a longer document that argues for your approach, with the client's problem, your solution, the timeline and the price. It often contains a quote
Bid or tender: a quote in a competitive process, usually answering a request for quote (RFQ) or a request for proposal (RFP). Bid is the usual word in US construction
Invoice: a request for payment after delivery. Gov.uk lists what a UK invoice must include, such as a unique identification number, the supply date, the VAT amount if applicable and the total owed
What should a quote include?
A quote must be complete enough to accept. Contract law basics says an offer needs sufficient information to be capable of being accepted, and must show that you intend to be bound. For UK consumers, Schedules 1 and 2 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 also require your identity, geographical address and telephone number, the main characteristics of what you supply, the total price inclusive of taxes and the arrangements for payment and performance. A practical checklist:
Your business name, address and contact details, plus company and VAT numbers if you have them
The client's name and address, a quote number, the issue date and an expiry date
What you will deliver, and what is not included
An itemised price per line, with quantities and unit prices
Tax on its own line, VAT in the UK or sales tax in the US where it applies, then the total
The start or delivery date, and payment terms such as a deposit and the deadline
Your terms and conditions, attached and stated to form part of the quote
For UK consumers who buy at a distance or off-premises, the details of their right to cancel
A clear way to accept, such as a signature block or an accept button
Is a quote legally binding in the UK?
Yes, once the client accepts it. Contract law basics says a quotation will usually involve an offer, and once the customer accepts it you are likely to have a legally binding contract. Before acceptance nobody is bound. If the client replies with changes, such as a lower price, that is a counter-offer, which sets aside your quote and becomes a new offer. An offer also falls away if it is rejected or not accepted within a reasonable time. With consumers, statute adds three rules.
Consumer Rights Act 2015, section 50: anything you say or write to a consumer about a service is a term of the contract if they take it into account when deciding to go ahead. Business Companion notes that this includes quotations and promises about timescales
Sections 12 and 50(3): the pre-contract information required by the 2013 Regulations, such as the price, is also treated as a term of the contract
Section 51: if no price was agreed, the consumer pays a reasonable price for the service, and no more. For business clients, section 15 of the Supply of Goods and Services Act 1982 implies a reasonable charge in England, Wales and Northern Ireland
Is a quote legally binding in the US?
It can be, and the rules depend on what you sell. Services follow general contract law. Goods also fall under Article 2 of the Uniform Commercial Code (UCC § 2-102). Cornell's Legal Information Institute notes that the UCC has been adopted in some form by every state and the District of Columbia, and that an offer must lead a reasonable person to expect a binding contract to arise from its acceptance. Until it is accepted, an offer can usually be withdrawn, unless the parties have created an enforceable option contract. Three rules matter most when you quote.
Mirror image rule: outside the UCC, acceptance must match the offer exactly. A reply that changes the terms is a counteroffer, which rejects your quote and replaces it with a new offer (Cornell LII)
UCC § 2-207: for goods, a definite acceptance can form a contract even if it adds or changes terms. Between merchants, the added terms become part of the contract unless your offer limited acceptance to its own terms, they materially alter it or you object in time. So read a client's purchase order closely
UCC § 2-205, the firm offer rule: a merchant's signed written offer for goods that gives assurance it will be held open cannot be revoked for lack of consideration during the stated time, or for a reasonable time if none is stated, and never beyond three months. A merchant is someone who deals in goods of that kind (§ 2-104). If that assurance sits on a form the buyer supplied, such as the buyer's own quote request, the seller must sign it separately
How long is a quote valid?
As long as it says, so always print an expiry date. Without one you rely on the vaguer idea of a reasonable time. Contract law basics advises a time frame that lets the client consider the offer carefully. In the US, a firm offer for goods with no stated period stays open for a reasonable time, capped at three months (UCC § 2-205). Match the period to how stable your costs are.
7 to 14 days when your price depends on materials, fuel or exchange rates that move quickly
30 days for most services and standard products
60 to 90 days for large projects with long approval cycles
If the client wants to go ahead after expiry, send a fresh quote, even at the same price
What does a quote look like? An example you can copy
Here is a complete quote from a fictional web design studio to a fictional bakery, with prices for a UK client in pounds and a US client in dollars. Copy the structure and replace the details.
Header: Quotation Q-2026-014, Northfield Web Studio, with address, email and phone. Date 29 September 2026, valid until 29 October 2026
Prepared for: Harbour Lane Bakery, with the owner's name and business address
Scope: five-page website with contact form and booking link, one round of design revisions, launch on the client's domain. Not included: copywriting, photography, hosting
Lines: design and build of five pages, £2,400 or $3,000. Contact form and booking link, £300 or $400
Optional line: blog set-up, £450 or $550, tick to include
Subtotal without the optional line: £2,700 or $3,400
Tax: in the UK, if you are VAT registered, VAT at 20% is £540, total £3,240. In the US, add any sales tax your state charges on this service as its own line
Timeline: start within 10 working days of acceptance, launch four weeks after the content arrives
Payment: 50% on acceptance and 50% on launch, each invoice due within 14 days
Terms: our attached terms and conditions form part of this quote. Extra work is quoted separately before it starts
Acceptance: sign below or click accept before 29 October 2026. Name, position, date and signature
Can a client accept a quote by email or electronic signature?
Yes. In the US, the E-SIGN Act says a contract relating to a transaction in interstate or foreign commerce may not be denied legal effect, validity or enforceability solely because an electronic signature or record was used to form it (15 U.S.C. § 7001). In the UK, Article 25 of the UK eIDAS Regulation says an electronic signature shall not be denied legal effect solely because it is electronic, and section 7 of the Electronic Communications Act 2000 makes such signatures admissible in evidence. Contract law basics adds that an email acceptance counts from when you could reasonably have received it, read or not. What you need in a dispute is proof of who accepted which version, and when. Proposal Expert records this with an eIDAS simple electronic signature, a trusted timestamp and a sealed audit trail.
Frequently asked questions
Is a quote the same as a quotation?
Yes. Quote is the short form of quotation, and both mean a fixed-price offer for defined goods or work. Quotation is the more formal word. What matters legally is the content, not the word at the top.
Can I change a quote after the client has accepted it?
Not on your own. Once the client accepts, you usually have a contract at the quoted price, so any change needs their agreement. For UK consumers, the Consumer Rights Act 2015 says a change to the pre-contract information you gave is not effective unless you and the consumer expressly agree it (sections 12(3) and 50(4)). For extra work, get a short change quote accepted first.
Should a quote include VAT or sales tax?
In the UK, consumers must be given the total price inclusive of taxes (Consumer Contracts Regulations 2013, Schedules 1 and 2). For business clients, show the net price, the VAT rate and the VAT amount. The standard rate is 20%, with 5% and 0% rates for some goods and services (gov.uk). In the US, most states and municipalities charge sales tax at different percentages, and some items are not taxed at all (USA.gov), so show it on its own line.
Can a client cancel after accepting a quote?
Business clients usually cannot. UK consumers who accept a distance or off-premises contract, such as a quote signed at their home, can cancel without giving a reason, for services within 14 days of the contract (Consumer Contracts Regulations 2013, regulations 29 and 30). In the US, the FTC's Cooling-Off Rule gives consumers three business days to cancel certain sales made at their home, workplace or dormitory for $25 or more, or at a temporary location for $130 or more.
Can I charge for writing a quote?
You can, if you agree it with the client before you do the work. Quotes are usually free. When a quote needs a site survey, measurements or design work, agree the fee in writing first and say whether it comes off the price if the client goes ahead.