Legal Question in Business Law in California

Re: Obligation when giving price quotes

Often, yes, especially if the transaction is for the sale of goods (rather than services) or, if services are included, that the goods dominate.

The California version of the Uniform Commercial Code provides at section 2205:

(a) If an offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months; but any such assurance on a form supplied by the offeree must be separately signed by the offeror."

(Following this language is an even longer paragraph stating somewhat different rules if the offer is made to a licensed contractor).

If the offer pertains primarily to services, it is less likely to be binding on the offeree unless supported by consideration.

Re: Obligation when giving price quotes

I agree with the previous post and would just like to add the following:

You need to determine if your contract is for the sale of goods. If subject matter is goods and services, you have to determine what is the more important part test. A classic example is a contract to paint a house. If the painter is to provide the paint and the labor, you have a contract for both goods and services. However, the more important part is the labor. As such, courts would not apply section 2 of the UCC.

Re: Obligation when giving price quotes

I agree with the previous two posts, with an addition.

The elements of a contract are offer, acceptance and consideration. The price quote looks like an offer, and the buyer seems to have communicated timely acceptance.

In a sale of goods, the UCC applies to create a contract, but even for services it looks like a binding contract has been formed.

(Consideration is anything of value, from one side the services provided, from the other payment)