Should you honour a Quote?

[ericmark]

Back years ago when in collage we were told a contract has three parts, the last part is the consideration, which means money paid, so until some money is paid there is no contract.

 

[JohnD]

no,

the contract has to include a consideration. Eg
"I want you to build me this shed"
"I will build you the shed"
"We agree on a price of £500"

but the contract exists as soon as agreement is expressed.

That's why you can sue somebody who doesn't pay.

 

[ReJect]

Back years ago when in collage we were told a contract has three parts, the last part is the consideration, which means money paid, so until some money is paid there is no contract.

Most likely it is actually contract includes payment/reward and contract still exists whether that payment is done later.

 

[ericmark]

Yes @JohnD is correct, it was a long time ago I did the law, but before work starts there must be some option to cancel a contract, I am sure some of the people flooded out, and also some businesses, must as a result need to cancel work. If the work had started then that's different, but before it starts there must be an option to cancel, there may be a fee involved, normally there is a cancellation fee, which must I am sure go both ways.

 

[JohnD]

not necessarily

In some cases (e.g. you contract to build a shed, but a volcano erupts, or an enemy power invades) it becomes impossible to comply and you can claim force majeure; and often if you contract to do something (e.g. you exchange contracts to buy a house, then change your mind) there may be penalties or damages written into the contract; if not, you can be sued for breach of contract and you may have to pay all the other party's losses.

A contract is a binding commitment (with a few exceptions)

 

[noseall]

My quotes stipulate 'valid for 1 month only' just in case the quote happened to cross over a period of materials price increases.

 

[EddieM]

My quotes stipulate 'valid for 1 month only' just in case the quote happened to cross over a period of materials price increases.

So genuine question, I know you're an old salt, so presumably you're pretty experienced in quoting, if you right royally f'ed up with the quote would you still honour it?

 

[noseall]

if you right royally f'ed up with the quote would you still honour it?

No. I'd negotiate with the customer with the aim for a bit of give and take. The last thing a customer wants is a poor quality job.

 

[EddieM]

No. I'd negotiate with the customer with the aim for a bit of give and take. The last thing a customer wants is a poor quality job.

Fair enough, what if they held you to it?

 

[noseall]

Fair enough, what if they held you to it?

I'd void the quote as out of date and re-quote based upon inflation and latest prices.

 

[opps]

That's business. You have to take the rough with the smooth. I chose this builder because of recommendations and the price. I assume that any business like this would have insurance to cover such cock ups. I do.

I am glad that you came to an amicable agreement with the builder.

I am not aware of any insurance that would cover miss-quotes.

 

[vspot]

Because its a binding legal agreement, that's why.

But mistakes happen. It has happened to me a lot of times to increase the quote because the initial estimation wasn't enough.