What is true about quotes in the context of procurement?

In procurement, it is important to understand that a quote is generally not considered a formal offer in the same sense as a legally binding contract. Instead, a quote serves as an invitation to negotiate and provides potential buyers with approximate pricing and terms for goods or services.

This understanding differentiates quotes from binding contracts, which require acceptance of the terms to form a legal obligation. By viewing a quote as a preliminary tool for facilitating discussions, procurement professionals can engage in further negotiations or modifications before arriving at a final agreement. Thus, recognizing that a quote is not an offer emphasizes its role in the procurement process as a basis for initial pricing and potential terms rather than a commitment to fulfill an order as a binding contract would be.