Is a signed quotation legally binding?

Yes, a signed quotation that demonstrates intent to sign, consent to electronic records (where required), clear attribution, and reliable retention can be binding under the ESIGN Act and UETA. Include signature, dates, and explicit acceptance terms to strengthen enforceability.

Can customers sign quotations electronically?

Yes. Electronic signatures are valid under 15 U.S.C. §7001 (ESIGN) and UETA in most states. Exceptions (e.g., certain court filings, wills) do not typically include commercial quotations but review local statutes if notarization is required.

What if the customer requests a scanned signature?

A scanned image is an acceptable electronic signature when accompanied by an audit trail demonstrating intent and attribution. For higher-risk deals consider stronger authentication or digitally signed PDFs for non-repudiation.

How long should a quote remain valid?

State the validity period explicitly (e.g., 30 days). The effective date and expiry determine acceptance window and the seller's obligation to hold pricing.

Do I need a W-9 when issuing a quote?

Provide a W-9 upon request for vendor or subcontractor payments. There is no filing deadline for the W-9 itself, but missing TINs can trigger backup withholding (24%).

How should I store executed quotations?

Retain signed records in tamper-evident format with search capability. Follow IRS retention (3 years) and industry rules (HIPAA 6 years) as applicable to the quote content.

Electronic Signature
Templates
Sales
Sales Quotation Procedure

Sales Quotation Procedure

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

SALES QUOTATION PROCEDURE

Quotation Identification

Quotation Number: Date Issued:

Valid Until (Expiry Date): Validity Period (days):

Seller and Buyer Identification

Seller (Company providing quotation) Seller Billing Address Seller Contact Buyer (Client receiving quotation) Buyer Billing Address Buyer Contact

Quotation Items (Itemized)

Item	Description	Quantity	Unit Price	Line Total

Subtotal Tax (specify rate %) Shipping / Handling Total Due

Payment Terms

Payment Due: Net days from invoice date. Accepted payment methods:

Wire Transfer Credit Card Check Other:

Late payment shall accrue interest at % per month (or highest rate permitted by law), plus collection costs and attorney fees where permitted.

Delivery Terms

Estimated Delivery Date: . Shipping Method:

Risk of loss and title shall pass to Buyer upon delivery to the carrier at Seller's facility unless otherwise agreed in writing. Buyer acknowledges and accepts risk transfer upon carrier pickup by selecting below: Buyer accepts risk on carrier pickup

Warranty

Seller warrants that products furnished under this quotation will conform to Seller's published specifications and will be free from defects in materials and workmanship for a period of months from date of delivery. Remedies are limited to repair, replacement, or credit at Seller's option. This warranty does not apply to damage resulting from misuse, neglect, unauthorized modification, improper installation, normal wear, or external causes.

Returns and Refunds

Returns require prior written authorization from Seller. Authorized returns must be made within days of delivery and shipped freight prepaid. A restocking fee of % may apply to non-defective returns. Refunds will be issued following inspection and at Seller's discretion.

Limitation of Liability

EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, SELLER'S AGGREGATE LIABILITY FOR ANY CLAIM ARISING OUT OF OR RELATED TO THIS QUOTATION SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY BUYER PURSUANT TO THE RESULTING ORDER. IN NO EVENT SHALL SELLER BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, OR SPECIAL DAMAGES, LOST PROFITS, OR LOSS OF BUSINESS.

Governing Law and Dispute Resolution

This quotation and any order issued pursuant to it shall be governed by the laws of the State of without regard to conflict of laws principles. Parties agree to submit to the exclusive jurisdiction of the courts located within that state for disputes that are not resolved by agreement or alternative dispute resolution.

Internal Procedure and Approvals

Quotation Prepared By: Approved By (Sales Manager):

Preparation Notes Approval Conditions / Exceptions

Certification of Quotation

The undersigned certify that the information contained in this quotation is accurate to the best of their knowledge, that prices reflect the terms stated herein, and that acceptance of this quotation by Buyer in writing constitutes a binding offer subject to the terms and conditions set forth above.

Seller:

By:

Date:

Buyer:

By:

Date:

What a Sales Quotation Procedure Is and When It Applies

A Sales Quotation Procedure documents how a seller prepares, approves, issues, and tracks price quotations presented to prospective buyers. It covers required information (product or service description, unit prices, discounts, taxes, delivery terms, validity period), approval routing, version control, and archival. The procedure clarifies roles and responsibilities to reduce disputes, standardize commercial terms, and ensure that any quoted price can be relied on by sales, finance, and legal teams while enabling consistent follow-up and recordkeeping.

Why a Formal Procedure Improves Quotation Accuracy

A documented Sales Quotation Procedure reduces pricing errors, accelerates approvals, and creates a consistent paper trail for audits and customer disputes. It protects revenue margins by enforcing discount limits and captures key terms that affect tax and delivery obligations.

Teams and Roles That Typically Use This Procedure

The Sales Quotation Procedure is used across commercial, legal, and operations teams to prepare and approve customer quotes.

Sales representatives who draft quotes and gather customer requirements for pricing and delivery.
Pricing or commercial operations who validate discounts, margins, and special terms before approval.
Finance and revenue teams who confirm tax treatment, invoicing terms, and accounting codes.

Centralizing these roles in a repeatable workflow reduces rework and speeds time-to-acceptance while preserving an audit trail.

Essential Elements to Include in Every Sales Quotation Procedure

A robust procedure annotates the quote structure, approval thresholds, delivery and payment terms, change control, and how signed acceptances are stored and enforced.

Quote Header

Include unique quote number, issue date, expiry date, customer legal name, and contact details to ensure traceability and prevent duplicate offers.

Line Items

List product or service descriptions, quantities, unit prices, SKU or part numbers, and any applicable discounts or bundled pricing to avoid ambiguity.

Taxes and Fees

Specify tax treatment, jurisdiction, freight, and handling charges. State and local tax rules may change total payable and reporting obligations.

Payment Terms

State payment method, due date, late fees, discounts for early payment, and whether prepayment or deposit is required.

Delivery and Acceptance

Define delivery method, lead times, transfer of title and risk, and acceptance criteria to reduce disputes on fulfilment.

Approval and Versioning

Document approval thresholds, approver roles, revision history, and how superseded quotes are archived or voided to maintain control.

Step-by-Step: Creating and Issuing a Sales Quotation

Follow these sequential actions to prepare, approve, and send a compliant sales quotation.

01

Draft: Populate quote template with customer, items, pricing, taxes, and validity.
02

Internal Review: Route to pricing and finance for discount and tax verification.
03

Approval: Obtain required sign-offs based on defined approval thresholds.
04

Issue: Send finalized quote to customer and record delivery channel.

Configuring an Online Quotation Workflow

Map your digital workflow to match internal approvals and external signing requirements for a predictable, auditable process.

Field	Configuration
Document Template	Create a reusable template with required fields and calculations.
Role Assignment	Define sender, approver, and customer signer roles for routing.
Authentication	Select signer authentication method (email, SMS, KBA) per risk level.
Notifications	Enable reminders and audit logging for overdue actions.

Typical Online Quotation Flow

An efficient eWorkflow reduces manual handoffs and preserves an audit trail for each stage of the quotation lifecycle.

Upload: Upload or generate the quote from a template.
Place Fields: Insert name, price, date, signature, and conditional fields.
Route: Send to internal approvers, then to customer for signature.
Archive: Store executed quote and certificate of completion.

Technical Requirements for Digital Quotation and eSigning

Choose a platform that supports templates, audit trails, and the integrations your teams need.

Integrations: Salesforce, NetSuite, Microsoft 365
File Formats: PDF, DOCX, XLSX
Authentication: Email, SMS, KBA options

Common Preparation Pitfalls to Avoid

Ambiguous product descriptions that leave scope and deliverables open to interpretation and later dispute.
Outdated price lists or unapproved discounting that erodes margin and causes reconciliation failures.
Missing tax or jurisdiction details that result in incorrect invoicing and tax reporting adjustments.
No documented approval limits, which lets unauthorized discounts pass and creates revenue leakage.

Consequences of Errors in a Sales Quotation

Incorrect Pricing: Lost revenue or renegotiation

Missing Signature: Enforceability risk

Tax Misstatement: Reporting penalties

Unauthorized Discounts: Internal control failures

Late Delivery: Breach of terms

Poor Versioning: Customer confusion

Key Timelines to Include and Track

Capture validity windows and response deadlines on every quote so both parties share clear expectations and compliance teams can track obligations.

Quote Validity Period:

State exact expiry date or number of days from issue.

Customer Response Deadline:

Specify how long the buyer has to accept terms.

Delivery Lead Time:

List expected shipment or service start dates.

Invoice Issue Date:

Indicate when the invoice will be generated after acceptance.

Tax Reporting Triggers:

Collect W-9 when required; withholding if TIN missing.

eSignature Pricing Snapshot for Quotation Workflows

Compare core price points and feature indicators for common eSignature vendors to assess total cost and compliance fit for quotation workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Security and Compliance Controls to Include

Encryption: TLS 1.2/1.3; AES-256

Audit Trail: IP, timestamp, and action log

Access Controls: Role-based permissions

BAA Availability: HIPAA BAA required

Regulatory Support: ESIGN and UETA compliance

Certifications: SOC 2 Type II, ISO 27001

Frequently Asked Questions About Sales Quotations

Answers to common legal, technical, and process questions encountered when preparing, sending, and storing sales quotations.

Need help? Contact support

Is a signed quotation legally binding?
Yes, a signed quotation that demonstrates intent to sign, consent to electronic records (where required), clear attribution, and reliable retention can be binding under the ESIGN Act and UETA. Include signature, dates, and explicit acceptance terms to strengthen enforceability.
Can customers sign quotations electronically?
Yes. Electronic signatures are valid under 15 U.S.C. §7001 (ESIGN) and UETA in most states. Exceptions (e.g., certain court filings, wills) do not typically include commercial quotations but review local statutes if notarization is required.
What if the customer requests a scanned signature?
A scanned image is an acceptable electronic signature when accompanied by an audit trail demonstrating intent and attribution. For higher-risk deals consider stronger authentication or digitally signed PDFs for non-repudiation.
How long should a quote remain valid?
State the validity period explicitly (e.g., 30 days). The effective date and expiry determine acceptance window and the seller's obligation to hold pricing.
Do I need a W-9 when issuing a quote?
Provide a W-9 upon request for vendor or subcontractor payments. There is no filing deadline for the W-9 itself, but missing TINs can trigger backup withholding (24%).
How should I store executed quotations?
Retain signed records in tamper-evident format with search capability. Follow IRS retention (3 years) and industry rules (HIPAA 6 years) as applicable to the quote content.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now