what are the differences between the quotation and the offer The Difference between Quotation and Offer

The Difference between Quotation and Offer

The terms “quotation” and “offer” are often used interchangeably in everyday language, but they actually have different meanings in the context of business transactions. To understand the difference between quotation and offer, it is important to examine their definitions and how they are used in various scenarios. According to the Oxford Dictionary, a quotation is “a statement of the estimated or fixed price of goods or services” (“Quotation,” n.d.). Quotations are used to provide customers with an idea of the cost of goods or services. Quotations are generally informal, and the stated price does not bind the customer or the supplier and may be subject to negotiation. On the other hand, an offer is a “formal proposal to buy or sell goods or services at a particular price” (“Offer,” n.d.). An offer is a binding agreement between two parties, so once accepted it must be fulfilled. This means that if a customer accepts an offer, they are obligated to purchase the goods or services at the offered price, and the supplier. Cont…