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Should you honour a Quote?

Discussion in 'Trade Talk' started by mdj1, 10 Nov 2019.

  1. ^woody^

    ^woody^

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    The offer and acceptance create the contract, and the subsequent actions known as "intentions to create legal relations" seals the agreement.

    So there needs to be no money change changes, no formal contract nor a signature.
     
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  3. Iamchamps

    Iamchamps

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    Surely something that is going to cost £48k would be an estimate and not a quote especially if you did not intend to have it done for 11 months. As per previous comments material costs can change daily.

    So while the title says quote I would bet it is nothing more than an estimate. An estimate is not legally binding.

    Just to add if it is an actual quote and as the OP says the builder has confirmed it was a quote given to another customer then he would have accepted a legally binding contract to do a totally different job at his property which would not even been correct.
     
  4. ReJect

    ReJect

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    I honestly know very little about contracts. Apparently there are solicitors who work specifically on contract law, due to how complex it is.
    The “subsequent actions” to seal agreement could be said in the OPs example to be stage payments and work schedule agreements.
    Surely if there is disagreement in either of those at final stage, there is no contract formed?
    If that isn’t true, then I could give you a quote for a large job for supplying and installing materials and you accept it, then I would be legally obliged to do the work and you could dictate the work schedule and how you were to make payments to me?
    If I started the job, then yes, I would have entered a contract without us agreeing schedule or stage payments.
    But if I refuse to begin the job without the above details agreed, I reckon no contract was fully completed.
     
  5. ^woody^

    ^woody^

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    Formation of a contract is the offer to do the work and then the acceptance of the offer. The third part, payment often comes later so is not relied upon as being necessary before the contract is formed but is essential for there to be something offered as payment.

    So then comes the "intention to create the legal relations" (ie the contract) and this is not the actual payment, as the contracted works would have allready started by the time payment is made, so it is the actions taken by the parties with the intention of fulfilling the contract. Things like the OP getting a loan, tidying the garden ready for the builder, or booking time off work .... and for the builder, pencilling in the job, organising his labour and materials, measuring the site and such like.

    These actions will demonstrate that the parties intended to fulfill their parts of the agreement after the offer/acceptance stage.

    As for "If that isn’t true, then I could give you a quote for a large job for supplying and installing materials and you accept it, then I would be legally obliged to do the work and you could dictate the work schedule and how you were to make payments to me?"

    What you are describing there are the contract terms, and not the actual contract service. So no, I could not dictate the work schedule or the payment terms, and neither could you dictate those to me as they were not agreed. The only thing agreed in this scenario is that you would supply and install the materials, and I would give you something for doing that.
     
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  6. Notch7

    Notch7

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    I think it is the difference between an 'invitation to treat' and the view is that the quote was an offer to do the work, which was accepted by the customer, creating a contract at that point.

    The reality is that mdj1 would have to sue the builder ....which could go on for years.
    or the builder could accept the job at the £36k price and then add extras amounting to £12k......
     
  7. ReJect

    ReJect

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    In effect then the contract could not be legally enforced if one or both sides were disagreeing with how payments were to be made or time limit of job etc?
    Although this is theoretical, as ideally the details should have been in the contract already.
     
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  9. ^woody^

    ^woody^

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    That applies to shops or the suchlike sellling of goods and services and relates to the seller putting a price on the goods/service and inviting the customer to buy

    What is commonly not known is that it is the customer who makes the offer despite the seller putting a price on their goods/service - that is not the offer. So strictly, the price in these situations is merely a suggestion (the invitation) and the customer is perfectly at libertly to offer some other price - and the seller can accept or refuse the offer.
     
  10. ^woody^

    ^woody^

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    No, the contract is the broad agreement to do something/have something done and get paid/pay for that something. The terms of the doing and paying are separate, and disagreement on the terms do not dictate whether the contract is enforecable or not.

    Over the years the courts have decided on fairness of contracts and when there are no specific agreed terms, there are precedents as to how what would be fair in such curcumstances, or how the contract should be interpreted.

    There are specific laws on fairness of contracts, along with precedents. So for instance, those big lists of 'Terms and Conditions' that we get put on us when we buy something, or one party makes the other party sign as part of the agreement, may not automatically be valid or fair or entirely enforceable, but that wont mean that the whole contact is not enforceable.
     
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  11. Notch7

    Notch7

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    I reckon the client has agreed the higher price and the job has started (y)
     
  12. Mottie

    Mottie

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    I hate these threads that start, cause many answers only for the OP who first asked the question, never to return and let us know how it all went. :mad:
     
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  13. Ryler

    Ryler

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    Solicitor who specializes in contract law gives an answer here....
    https://www.ukbusinessforums.co.uk/threads/honouring-a-quote.265279/

    The builder in the OP's case should agree to do the job for the lower price as quoted and get a deposit before he starts the job.
    Then start the job and declare himself bust and pull out.:D

    Know someone who took £50k as a deposit from a client two months ago and the client rang up last week wanting to know when the steel will arrive.
    Told him to pay for the steel himself as his £50k is gone.:mrgreen:
    Think he might be getting worried.
     
    Last edited: 24 Nov 2019
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