Can a vendor change the price for merchandise after issuing a written quotation and receiving a written purchase order within the 60 day term of the quote?

UPDATED: Aug 16, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 16, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a vendor change the price for merchandise after issuing a written quotation and receiving a written purchase order within the 60 day term of the quote?

Customer inquires about a product. Vendor issues a written quotation, which specifies that the quotation is valid for 60 days. Customer sends written purchase order well within the 60-day validity period of the quote. Vendor then issues invoice for higher price. Is this legal? (Note: Customer and Vendor are in different states – if that matters).

Asked on August 16, 2011 New Hampshire


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

A contract requires an offer and an acceptance. 

An offer is a manifestation of present contractual intent containing definite and certain terms communicated to the other party.

Vendor's written quotation is a valid offer with definite and certain terms; price quoted is valid for sixty days and this was communicated to customer.  An offer is effective upon receipt.  The offer was effective when customer received it.

Acceptance is effective upon dispatch.  Customer accepted all of the terms of the offer and communicated this to vendor by sending a written purchase order for the quoted price within the sixty day period that the quote was in effect.  Therefore, customer's acceptance of all the terms in the offer formed a valid contract.  Vendor cannot change the price.  Customer can sue vendor for breach of contract for issuing the invoice at a higher price.

A contract requires a meeting of the minds (agreement on the essential terms which include identification of the parties, subject matter of the contract, price, quantity, time for performance, etc.) as occurred here.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption