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Patrick H.
Patrick H., Lawyer
Category: Australia Law
Satisfied Customers: 5420
Experience:  Dip Law LPAB - Sydney based lawyer
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Hi, I am a commercial business. a) I did a quote for the

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I am a commercial business. a) I did a quote for the supply of product, value $120K, my quote has a front page condition (smaller print) "based on my understanding and interpretation of your requirements" b) I received an order c) I screwed up the quote and do not want to accept the order. Where do I stand?
Hello and thank you for your question.

If your quote is wrong because you reasonably misunderstood some aspect of the client's requirements then you should not be legally bound by the agreement. That said, what constitutes a reasonable misunderstanding will depend on the circumstances of your misunderstanding.

Also, if your quotation is vague in other ways then it may be that your quotation does not actually amount to a contractual offer, in which case no contract is formed by their acceptance in any event, since further negotiations are still required to form a contract.

Generally, in these situations the best course of action is to simply be up front about the misunderstanding and to provide a revised quote to reflect your new understanding as to what is required. If the other party presses the original quotation and asserts there is a contract and you are bound, then I would suggest you engage a lawyer to try to negotiate your way out, but it is often the case that a good lawyer can cast enough doubt over a contractual claim that the other side may back down, but the sooner you get the lawyer involved, the better your prospects of a good outcome.

If you need assistance locating a suitable lawyer contact the Queensland Law society:

I trust the above assists your understanding.

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Thank you and good luck.

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