Depending on the business, a professional may be required to provide a quote to a customer. This is also the case if the price of a product or service cannot be easily determined, or if the customer requests one. But how long is a quote valid? Do advance payments affect this time frame? And what happens after the time frame? Find the answers to these questions in this article, which will tell you what you need to know about how long a quote is valid.
What’s in this article?
- What is a quote and what is it used for?
- Why does a quote have a term of validity?
- Does the term of validity need to be indicated on a quote?
- How long is an unsigned quote valid?
- How long is a signed quote valid?
- How long is a signed quote with an advance payment valid for?
- What should be done if the quote’s term of validity is exceeded?
- Can a quote be changed after the term of validity?
What is a quote and what is it used for?
A quote is a document prepared by a professional and sent to a potential customer. It specifies the details of the business proposal: the type of transaction, the set price, associated costs, the terms of sale, and the quote’s term of validity, to name a few. The purpose of the quote is to inform the customer of the transaction’s characteristics.
Once signed, the quote commits the professional to deliver the product or service in accordance with the terms of the quote. It also commits the customer to pay the corresponding invoice. The customer’s signature signifies their acceptance of the offer, which means that they can no longer dispute either the terms of the quote or the price. A signed quote therefore has the value of a contract and is legally binding on both parties.
Why does a quote have a term of validity?
The term of validity of a quote allows a customer to consider a professional’s business proposal and decide whether to commit to it. It is a period during which the terms of the quote (the rates in particular) remain unchanged and valid. During the term of validity, professionals may not modify the content of the unsigned quote: they are obliged to keep the proposal as it is.
Does the term of validity need to be indicated on a quote?
For certain services or sales of goods, the term of validity must be stated on the quote, including:
- For works and repairs on buildings and household equipment
- For the sale of products and services intended to compensate for loss of autonomy
- For funeral services
- For cosmetic surgery services
- If the monthly price of a service intended for one person is €100 or more, inclusive of all taxes
In all other cases, it is optional but highly recommended to specify the quote’s term of validity. You can find out more about the information required in quotes in our article on the subject, or on the official French government website. For microbusinesses, see our article on the specifics of quotes when you’re self-employed.
How long is an unsigned quote valid?
A quote’s term of validity is determined by the professional issuing it. In general, it’s good practice to specify a reasonable time frame of one to three months. If no expiration date is specified, an unsigned quote is legally valid for three months.
How long is a signed quote valid?
To determine the term of validity of a signed quote, you need to look at the performance date set by the professional in the quote. This date indicates the end of the signed quote’s term of validity and the commitment of both parties.
How long is a signed quote with an advance payment valid for?
An advance payment does not affect the validity of a quote. The term of validity is the same as that of the signed quote (i.e., it corresponds to the performance date indicated in the quote).
What should be done if the quote’s term of validity is exceeded?
If the professional exceeds the execution date by more than seven days, the customer has 60 days to request late penalty payments or the complete cancellation of the commercial transaction. However, the professional may be excused from their obligation to perform the service or delivery if the nonperformance of the contract is due to exceptional circumstances, such as force majeure, which prevent the performance of the contract. The professional may also be released if the customer does not fulfill their obligation toward the professional, such as in the case of nonpayment.
Can a quote be changed after the term of validity?
Once the term of validity has expired, the professional is free to create a new copy of the quote with different sales terms and rates, and a different term of validity.
To change your quote, you can either use an online template or opt for an automated billing solution such as Stripe Billing, which makes it easy to create and process custom quotes—no code required. Contact one of our Stripe experts to find out how we can help you streamline the creation and management of your quotes.