Estimate vs quotation — the legal distinction and why "it's just an estimate" may not save you

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.

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/

Confidence: Verified.

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 A detailed online estimate with no reasonable basis can expose you to misrepresentation or negligence — even when labelled "estimate" for the liability exposure, and R3 — Label every published estimate as an estimate, and show its vintage prominently for the practical safeguard.