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Contracts • Contract Formation
K#016
Legal Definition
Price quotes may be offers if they are sent in response to an inquiry.
Plain English Explanation
Generally, for someone to be able to provide a quote for a service or goods, there must be enough information to calculate that quote. In other words, the parties are identified, the item or service is identified, the amount or quantity of that item or service is identified. The only thing missing is a price. So when that price is provided, it can sometimes act as an offer, which can then be accepted, forming a valid contract.
Hypothetical
Hypo 1: Sam sells tacos. Bob needs tacos for his upcoming birthday party. Bob sends Sam an email asking him, "How much would it cost to have you cater my birthday this weekend?" Sam responds, "Our minimum is $100. How many people are you expecting?" Result: No offer was made. This is just two people talking, which may eventually reach the point of a contract, but isn't enough yet to qualify.
Hypo 2: Sam sells tacos. Bob needs tacos for his upcoming birthday party. Bob sends Sam an email asking him, "How much would it cost to have you cater my birthday this weekend for 50 guests?" Sam responds, "$150." Bob responds, "Deal." Result: A valid contract has been formed. There is enough information between the conversations to treat Sam's response as a price quote to Bob's inquiry, so it is treated as an offer, which Bob accepted.
Hypo 2: Sam sells tacos. Bob needs tacos for his upcoming birthday party. Bob sends Sam an email asking him, "How much would it cost to have you cater my birthday this weekend for 50 guests?" Sam responds, "$150." Bob responds, "Deal." Result: A valid contract has been formed. There is enough information between the conversations to treat Sam's response as a price quote to Bob's inquiry, so it is treated as an offer, which Bob accepted.
Visual Aids
Related Concepts
Are offers assignable?
Are pre-existing duties valid consideration?
Can partial payment of a debt be consideration for release of that debt?
How can an offeree reject an offer?
How do courts assess the adequacy of consideration?
How may an offer be revoked?
Though offers can generally be freely revoked, what are the 4 exceptions?
Under battle of the forms, what happens to additional or different terms in an acceptance when at least one of the parties is a non-merchant?
Under battle of the forms, what happens to additional terms in an acceptance between two merchants?
Under battle of the forms, what happens to different terms in an acceptance between two merchants?
What are consideration substitutes?
What are illusory promises and how do they affect a contract?
What are requirement and output contracts?
What are the methods of terminating an offer?
What are the requirements of an offer?
What are the UCC Gap Fillers?
What is acceptance?
What is a contract?
What is a merchant's firm offer?
What is an option contract?
What is consideration?
What is detrimental reliance?
What is promissory estoppel?
What is required to form a valid, binding contract?
What is the effect of a conditional acceptance on an offer?
What is the effect of a contract that contains vague or ambiguous terms?
What is the effect of a contract that is missing price terms?
What is the effect of a contract that is missing quantity terms?
What is the effect of a counteroffer on an offer?
What is the effect of a lapse of time on an offer?
What is the effect of an offeree beginning to perform in response to an offer?
What is the effect of a seller sending non-conforming goods?
What is the effect of including additional or different terms to an offer?
What is the effect of part performance of a unilateral contract?
What is the effect of the death of a party prior to acceptance of an offer?
What is the Mailbox Rule and when does it apply?
When are advertisements valid offers?
When is past or moral consideration valid?
Who controls the method of acceptance, and what are the typical ways that an offer is accepted?
