Are my business quotes legally binding?

Construction worker happily talking to client

Providing a quote is a common initial step for many service-based businesses in NSW. This practice offers clients an insight into the costs of services and helps manage their expectations of quality.

In this article we will unpack whether these initial quotes are considered legally binding.  

What does the law say?

A price quote does have legal weight, but it typically only becomes legally binding once the client accepts it. If they don't, it's still just an offer without legal strings attached.

What are best practices for quotes?

Here's the crucial thing: just offering a quote doesn't create a legally binding agreement. This won’t happen until your clients accept the quote. So, it’s a good idea to state this clearly on your quotes so your clients know that when they accept it, they're entering into a contract with real legal obligations. This will help reduce potential disappointment or disputes if the customer changes their mind. Clarity and transparency from both parties are key in this process.

It's also a good idea to put an expiry on your quote so that the customer can’t accept it in the distant future when prices may have moved.

Remember the accuracy and intent behind your quotes can greatly impact your business's legal standing and reputation. If you need expert guidance, reach out to our legal team at Inkling Law via info@inklinglaw.com or via the button below. We're here to help you navigate the legal maze of contracts.