Quotation Agreement

Download Quotation Agreement Bundle

Quotation Agreement Format

[Your Company Name]
[Your Company Address]
Email: [Your Email] | Phone: [Your Phone Number]

Date: [Insert Date]
Quotation No: [Insert Quotation Number]

1. Party Details

Supplier:
Company Name: [Your Company Name]
Address: [Your Company Address]
Contact Person: [Contact Name]
Email: [Supplier Email]
Phone: [Supplier Phone]

Client/Buyer:
Company Name: [Client/Buyer Name]
Address: [Client/Buyer Address]
Contact Person: [Contact Name]
Email: [Client Email]
Phone: [Client Phone]

2. Quotation Scope and Description of Goods/Services

Total Amount: [Insert Total Amount]
(Include any applicable taxes, duties, and discounts, if applicable.)

3. Payment Terms

• Payment Method: [Specify the payment method, e.g., Bank Transfer, PayPal, etc.]
• Payment Schedule: [Specify if payments are to be made in installments or at once, e.g., 50% upfront, 50% on delivery]
• Payment Due Date: [Insert payment due date]

4. Delivery Terms

• Delivery Date: [Insert expected delivery date]
• Delivery Location: [Specify where goods/services are to be delivered]
• Mode of Delivery: [Specify mode of delivery, e.g., courier, shipping, etc.]
• Shipping Charges: [Indicate if shipping costs are included or to be paid by the client]

5. Validity of Quotation

• This quotation is valid for [X] days from the date of issuance.
• If no response is received within the validity period, this quotation will be considered void.

6. Terms and Conditions

1. Ownership: Ownership of the goods will be transferred upon full payment.
2. Cancellation/Modification: Cancellation or modification of the order is subject to a fee or terms as discussed.
3. Warranty: [Specify any warranty details for the goods/services.]
4. Force Majeure: Neither party will be liable for failure to perform due to unforeseen circumstances beyond control.
5. Governing Law: This agreement is governed by the laws of [Insert Country/State].

7. Acceptance and Signatures

By signing this quotation agreement, both parties agree to the terms and conditions stated herein. This document serves as a binding agreement upon acceptance by the client.

For Supplier (Your Company)
Authorized Signatory: _______________________________
Name: [Your Name]
Designation: [Your Designation]
Date: [Insert Date]

For Client/Buyer
Authorized Signatory: _______________________________
Name: [Client Name]
Designation: [Client Designation]
Date: [Insert Date]

What is a Quotation Agreement?

A Quotation Agreement is a formal document shared by a seller with a prospective buyer, outlining the pricing, scope, and terms of a proposed product or service. It serves as a pre-contractual document, enabling both parties to have a clear understanding of expectations before entering into a binding contract. Quotation Agreements are commonly used in industries like construction, manufacturing, and service sectors to ensure clarity, manage expectations, and promote transparency in business transactions. You can also see more on Business Contract.

Elements of a Quotation Agreement

The characteristics of a contractor’s quotation format are drastically different depending on the company that is submitting the quote. Although this is the case, there are some essential components in a contractor’s quotation, such as the ones stated below. The following are some fundamental traits that are frequently found in standard quote samples. If you intend to create a template for your organization, the following information should be included in the document, according to the most important information to include in this document:

1. Parties Involved – Clearly identify the buyer and seller or service provider, including their legal names and contact details.

2. Description of Goods or Services – A detailed list of the products or services being provided, including specifications, quantities, and other relevant descriptions. You can also see more on Vendor Agreement.

3. Pricing and Payment Terms – The agreed-upon price, payment schedule, and any terms related to discounts, taxes, or other charges.

4. Delivery Terms – Specify the delivery timeline, location, and conditions, including responsibilities for shipping, insurance, and risks.

5. Validity Period – The time frame for which the quotation is valid, after which the offer may expire or require renegotiation. You can also see more on Supplier Agreement.

How to Create a Quotation Agreement

Step 1: Identify Client Requirements

Begin by understanding the client’s needs, such as the services, products, and specific requirements they are seeking. Discuss key deliverables, scope of work, and deadlines with the client to ensure alignment on expectations. This step forms the foundation for an accurate and relevant quotation.

Step 2: Prepare the Cost Breakdown

List all components that will affect the cost, such as materials, labor, services, and taxes. Calculate the total cost while ensuring you maintain a fair profit margin. Make sure each cost item is clear to avoid confusion later in the process.

Step 3: Define Payment and Delivery Terms

Specify payment terms, including the payment schedule, due dates, and acceptable payment methods. Mention the delivery timeline, shipping details, and any conditions for the successful completion of the project. This ensures the client is aware of the terms before proceeding.

Step 4: Draft the Quotation Agreement

Use a formal document format that includes key details like client information, product/service descriptions, costs, timelines, payment terms, and signatures. Make the agreement easy to understand, precise, and legally enforceable by avoiding vague language.

Step 5: Review, Finalize, and Send

Review the document thoroughly to ensure no details are missing or inaccurate. Verify that the client’s information, cost details, and terms are clearly stated. Once satisfied, send it to the client for review and acceptance, encouraging them to sign and return it as a confirmation of agreement. You can also see more on Service Contract.

FAQs