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An offer is a quotation for a service or a product with specified terms of conditions. A description of the product, price, payment and delivery terms are often included.

An offer

The document is the basis for the terms of the potential transaction (purchase agreement). Terms which are not included in the quotation cannot usually be cited later. Drafted price lists are also quotations. The quotation should be sufficiently detailed so that the customer can easily compare different quotes.

An offer should contain this information

  • specification of the product or service
  • unit price and total price
  • discounts
  • time of delivery
  • delivery and payment terms.

An offer is binding for the seller, with a reasonable reflection period for the purchaser, unless otherwise stated in the offer. It is therefore a good rule to specify the period during which the offer is valid.

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A contract is concluded 

Three things are necessary in order for a contract to be entered into:

  • an offer
  • an acceptance
  • that the content of offer and acceptance is the same.

If all three of these conditions are satisfied, a contract has been entered into.

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