Proposals · Glossary

Is an accepted quote legally binding?

Usually yes. A quote is normally an offer, and when the customer accepts it without changes within its validity period, a contract forms on the quoted price and terms. It may not bind if the quote was labelled an estimate, was accepted after it expired, was accepted with changes, or left essential terms undecided.

Most quotes become contracts the moment the customer says yes, which is why the wording on a quote matters more than people expect. Knowing what turns a quote into a binding agreement helps both the business and the customer.

· Co-founder

5 min read · Published

Offer, acceptance and the rest

Contract law in Australia, the United Kingdom and the United States looks for the same core elements: an offer, an unqualified acceptance of that offer, consideration such as payment for work, and an intention to be legally bound. A quote with a specific price for described work is generally treated as an offer, and a customer who replies yes, signs it or pays the deposit has accepted it. From that moment the business is expected to do the work at the price, and the customer is expected to pay. The written quote becomes the main evidence of what was agreed.

When an accepted quote may not bind

Several things break the chain. An acceptance that changes the terms, such as asking for a lower price or a later date, is legally a counter offer rather than an acceptance, so nothing binds until the business agrees. A quote accepted after its stated validity date has lapsed as an offer, and the business can decline or reprice. A document labelled estimate may not promise a fixed figure. A quote that leaves the price or scope to be agreed later may be too uncertain to enforce. Consumer protection laws, including unfair contract terms rules, can also strike out particular terms even when the contract stands.

Electronic acceptance counts

Acceptance does not need ink. The Electronic Transactions Act 1999 in Australia and the ESIGN Act in the United States allow a contract to be formed and signed electronically, provided the method identifies the person and shows their intention. A click on an accept button, a typed name with a consent statement, or a formal e-signature can all serve, and what matters in a dispute is the evidence: who accepted, when, what exactly they saw, and that the document has not changed since. A record of those details is far more persuasive than a reply email saying sounds good.

Common mistakes

Businesses often start work on a verbal yes and later cannot prove which version of the quote was accepted. Others send a revised quote without withdrawing the earlier one, leaving two live offers. Customers sometimes accept by email while adding a condition, believing the deal is done when legally it is not. Quotes without a validity period can be accepted months later at an old price. Keep one current version, a dated acceptance and any changes in writing.

Where it shows up in the product

A sent proposal or quote is frozen as a version, and each recipient opens their own tracked link. Click acceptance asks for a name, email, a drawn signature and a consent box stating that the acceptance is binding. An acceptance certificate page records the title, who accepted, when, the IP address, browser, a content hash, the selected items with totals and the consent text. A proposal past its valid until date moves to expired and cannot be accepted, which closes the stale offer problem.

Questions people ask

Can a customer back out after accepting a quote?

Once a contract has formed, the customer generally cannot walk away without consequences unless the contract allows cancellation or a statutory cooling off right applies. In practice, many small businesses negotiate rather than enforce, and a deposit is the usual protection against a late cancellation. Check whether any door to door or unsolicited selling rules give the customer a cooling off period.

Can I change the price after a quote is accepted?

Not on your own. The accepted price is part of the contract, so changes need the customer's agreement, usually recorded as a variation. If the quote included a clause allowing specific adjustments, such as for materials price rises, follow that clause exactly and tell the customer in writing. Otherwise, absorb the difference or negotiate openly before doing extra work.

Does a verbal acceptance count?

A verbal acceptance can form a contract, but proving it is hard, and some contracts, such as many home building contracts, must be in writing under state law. A written or electronic acceptance that identifies the person, the date and the exact version accepted is much safer. Ask the customer to accept the document itself, not just reply that they are happy.

What happens if the customer accepts an expired quote?

An expired quote is no longer an open offer, so the acceptance is better treated as a request to proceed. You can honour the old price, send a revised quote, or decline. Say which in writing. Setting a clear validity date and having expired quotes stop accepting automatically avoids the uncomfortable conversation about whether an old price still applies.

Is a quote binding on the customer before they accept it?

No. Until it is accepted, a quote binds nobody, and the business can usually withdraw it before acceptance by telling the customer. The customer has no obligation simply because they asked for a price. Binding obligations start only when an unqualified acceptance meets a quote that is still open.

Do I need a signature for the quote to be binding?

Not always. Conduct such as paying a deposit or letting work begin can show acceptance. A signature, drawn or electronic, makes the evidence far stronger and is required for some regulated contracts. The safest approach is an explicit acceptance step that records the name, time and version, plus a consent statement saying the acceptance is binding.

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Sources

Written and checked by the OneCraft team. Last checked .