Quotation

A quotation in foreign trade is the act of a seller, in response to a buyer's inquiry, proposing transaction terms to the buyer. It typically includes the product name, specifications, quantity, unit price, trade terms (such as FOB, CIF), payment method, delivery time, validity period, etc. A quotation is mostly used in the preliminary negotiation stage and is not legally binding unless accepted by the buyer and converted into a formal contract. Use cases include replying to inquiries, proactive sales promotion, and following up after trade shows. Points to note: specify the quotation's validity period to avoid risks from exchange rate or cost fluctuations; distinguish between a Firm Offer and a Non-firm Offer—a firm offer is binding, while a non-firm offer can be changed; the quotation should be clear and complete to avoid ambiguity. Difference from an Offer: an offer is more legally binding, and once accepted by the offeree, a contract is formed; a quotation is usually regarded as an invitation to negotiate unless it is explicitly a firm offer. Difference from a Counter-offer: a counter-offer is a modification or rejection of a quotation.