A Quotation: What Commits You Legally, and What Must Appear On It

A quotation is an offer, and an offer binds before anyone signs

A quotation is an offer, and in every European system an offer is already a legal act before anyone signs it. Under article 1116 of the French civil code, in the version introduced by the 2016 contract law reform, an offer cannot be withdrawn before the expiry of the period its author fixed or, failing that, a reasonable period — and here is the part that surprises people: a withdrawal made in breach of that prohibition still prevents the contract from forming. The person who issued the quotation is liable in tort, but the customer gets damages and expressly not the loss of the expected benefits of the contract, so they do not get the job at the quoted price.

Article 1117 adds that the offer lapses at the expiry of the period or a reasonable period, and also on the death or incapacity of its author or the death of its addressee. German law states the same principle more shortly in paragraph 145 of the civil code: whoever offers another the conclusion of a contract is bound by the offer unless he has excluded being bound — which is exactly why German quotations so often carry a non-binding marking.

After signature: France caps the price, Germany does not

What happens after signature is where the two systems diverge completely, and it is the single most useful thing to know. In France, article 1793 of the civil code says that where an architect or contractor has undertaken the construction of a building at a fixed price according to a plan agreed with the owner of the land, no price increase may be claimed — not for increases in labour or materials, and not for changes or additions to the plan — unless those changes were authorised in writing and the price agreed with the owner. The signed fixed-price quotation is the ceiling.

In Germany the default is the opposite. Paragraph 649 of the civil code, which is titled Kostenanschlag and which was renumbered from paragraph 650 by the construction contract reform in force on 1 January 2018, provides that where an estimate underlies the contract without the contractor having assumed a guarantee for its correctness, and it emerges that the work cannot be carried out without a substantial overrun, the customer who terminates for that reason leaves the contractor with only the restricted claim of paragraph 645(1) — and paragraph 649(2) requires the contractor to notify the customer without delay as soon as such an overrun is to be expected. The German statute deliberately says substantial without naming a percentage; that threshold is case law, so no figure should be printed here.

The mandatory particulars come in three layers

The mandatory particulars are the other half of the question, and they split into three layers. General contract and consumer law supplies the base: identity, the description, the price and its tax treatment, and the pre-contractual information required of any professional dealing with a consumer.

National trade rules supply the rest, and they are much more specific than most people expect. In France, article 4 of the order of 24 January 2017 on price information for breakdown, repair and maintenance work in the building and home equipment sector requires, before any covered work, a detailed quotation carrying the date it was drawn up, the trader's name and address, the customer's name and the place of the work, the exact nature of the repairs, a detailed breakdown of quantity and unit price for each service and product, travel costs where applicable, the total before and including tax, the period of validity of the offer, and whether the quotation itself is free or charged for. Article L. 132-1 of the code de l'artisanat requires craft businesses to state on every quotation and every invoice the professional insurance where it is compulsory for the trade, the insurer's or guarantor's contact details, and the geographical coverage of the cover — a rule that people still cite as article 22-2 of the law of 5 July 1996, which was abrogated when the legislative part of the code de l'artisanat came into force on 1 July 2023.

In Spain, article 14 of Royal Decree 1457/1986 gives every user of a vehicle repair workshop the right to a written estimate with a minimum validity of twelve working days, allows work to begin only once the customer has signed it or has reliably waived it, and requires hidden defects discovered during the repair to be notified within forty-eight hours with the amount stated and approved expressly before the work is done. In Italy, article 9(4) of decree-law 1 of 24 January 2012, as amended by the annual competition law of 4 August 2017, requires a professional to make the estimated charges known to the client in written or digital form at the time the assignment is conferred, together with the details of the professional indemnity policy.

Frequently asked questions

Can I withdraw a quotation before the customer accepts it?

Not before the period you fixed has run, or failing that a reasonable period. Article 1116 of the French civil code goes further than most people expect: a withdrawal made in breach of that prohibition still prevents the contract from forming. You are liable in tort and the customer recovers damages — expressly not the loss of the expected benefits of the contract, so they do not get the job at your price. German law reaches the same place from paragraph 145 of its civil code, which is why so many German quotations are marked non-binding.

Can I raise the price after the customer has signed?

In France, not on a fixed-price quotation. Article 1793 of the civil code bars any claim for an increase — for labour, for materials, or for changes and additions to the plan — unless those changes were authorised in writing and the price agreed with the owner of the land. Germany's default runs the other way: under paragraph 649 of its civil code, an estimate the contractor did not guarantee leaves room for an overrun, but paragraph 649(2) requires him to notify the customer without delay as soon as a substantial one is to be expected.

How long does a quotation stay valid?

For the period you state on it; failing that, a reasonable period, after which article 1117 of the French civil code lapses the offer. It also lapses on the death or incapacity of its author, or the death of the person it was addressed to. Some trades set a floor: under Royal Decree 1457/1986 a Spanish vehicle repair workshop must give an estimate with a minimum validity of twelve working days.

Does a quotation have to be free?

No, but in France it has to say which it is. Article 4 of the order of 24 January 2017 on price information for breakdown, repair and maintenance work in the building and home equipment sector lists the period of validity and whether the quotation is free or charged for among the particulars a detailed quotation must carry — alongside the date it was drawn up, the trader's name and address, the customer's name, the place of the work, the exact nature of the repairs, a breakdown of quantity and unit price for every service and product, travel costs where applicable, and the total before and including tax.