{"id":1235,"slug":"estimate-vs-quote-legal-distinction","title":"Estimate vs quotation — the legal distinction and why \"it's just an estimate\" may not save you","kind":"reference","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team"],"topics":["regulatory-compliance","customer-facing-tools","estimate-quote-law"],"reference_body":"**Claim:** In contract law an **estimate** is an approximation based on incomplete information and is generally not binding; a **quotation** is a fixed-price offer that becomes binding on acceptance. Courts assess which has been given **objectively** (\"what a reasonable person would understand\"), not solely by the label used — a sufficiently detailed/precise figure can be construed as a binding offer.\n\n**Source:** Dispute Resolution Ombudsman https://www.disputeresolutionombudsman.org/blogs/q-what-is-the-difference-between-and-estimate-and-a-quotation-and-why-is-it-important ; FreshBooks https://www.freshbooks.com/hub/estimates/are-estimates-binding ; League & Williams (marine law) https://www.leaguelaw.com/posts/estimates-quotes-flexible-binding/\n\n**Confidence:** Verified.\n\n**Why this matters for Candid:** Calling your online tool \"an estimate\" is necessary but not sufficient. The legal posture is set by the *precision and detail* of the number, not the word you typed. Pair with [[misrepresentation-negligence-detailed-estimates]] for the liability exposure, and [[rule-label-every-estimate-with-vintage]] for the practical safeguard.","rationale_body":null,"metadata":null,"links":{"outgoing":[],"incoming":[{"slug":"research-brief-customer-facing-calculators-smb-june-2026","title":"Research brief: customer-facing calculators & tools for SMBs — the honest case (June 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"misrepresentation-negligence-detailed-estimates","title":"A detailed online estimate with no reasonable basis can expose you to misrepresentation or negligence — even when labelled \"estimate\"","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"estimate-10-20pct-over-rule","title":"Industry rule of thumb: estimates that exceed actual cost by more than ~10-20% require re-discussing scope","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"rule-label-every-estimate-with-vintage","title":"R3 — Label every published estimate as an estimate, and show its vintage prominently","kind":"rule","scope":"business","link_type":"depends-on"}]},"created_at":"2026-06-20T16:50:09.551Z","updated_at":"2026-06-20T16:50:09.551Z"}