Non-binding Offer Definition and Meaning Part I

Non-binding Offer Definition and Meaning Part I

Do you also have a non-binding offer ? Never heard? But surely you have heard of terms such as non-binding offer or non-binding offer belongs. This brings us to the subject of this article, namely the non-binding offer. The terms non-binding or non-binding are so-called exemption clauses and these can be very important for you if, for example, you have to make an offer more often . In the following article you will find out what exactly you have to understand by this non-binding offer and what you have to pay attention to here.

What is a non-binding offer?

According to TOPBBACOLLEGES, the non-binding offer is a legal term and describes an exception to the principle that the person who also submits a legal offer according to Section 145 of the German Civil Code (BGB) is always bound by this offer. The non-binding offer tells you nothing else than that this exception to the principle is a possibility for you to prevent this contractual obligation. In the case of a non-binding offer or a non-binding offer, you have the option of withdrawing your offer at any time and applying new conditions to be determined. This definition for a non-binding offer says nothing else than that with this addition you can practically turn the tables with a business partner and get them to submit an offer. It reacts and makes an offer, but there is for you in turn a reaction obligation to respond to the offer. With the submission of a non-binding offer, no declaration of intent is made, because this is clearly geared towards the conclusion of a contract.

Difference to the offer

There is a big difference between the non-binding offer and the correct offer. A deal is in contrast to the remaining free offer always a declaration of intent . This declaration of intent directs our attention to a contract . An offer is therefore to be understood as a binding declaration of intent. If the recipient of an offer makes a declaration of intent, you are talking about acceptance . You must not confuse the offer and the non-binding offer.

When does a non-binding offer make sense?

A non-binding offer or a non-binding offer always makes sense for you if you have the assumption that something can still change in your calculation costs . This means the calculation costs that you expect at the time of creating a non-binding offer. A non-binding offer always makes sense if you have to deal with uncertain framework conditions . This could be, for example, fluctuating prices for raw materials or uncertain stocks. In these situations it can therefore be very useful to work with an exemption clause .

Example of a non-binding offer

To understand exactly how useful a non-binding offer can be, the following example should help you: You have a farm. In the spring of April you start planting the first potatoes. You are planning the first harvest for the month of July. If a buyer of your potatoes, for example a supermarket, wants to have an offer for the potatoes from you in the spring, you don’t even know at this point how your harvest will turn out. For this reason, you will create a non-binding offer for this customer. He now knows that it is quite possible that there may still be changes .

Significance of the non-binding offer for freelancers and traders

If you are making a non-binding offer, you as a freelancer or trader need to consider important aspects. If you create a non-binding offer as a cost estimate , this represents a business basis, but is by no means part of the contract. However, if the costs significantly exceed the price stated in the cost estimate, you must definitely inform your customer. This then has the option of either accepting the higher costs or terminating the contract. In this case, however, he must reimburse you for the costs incurred so far. However, it is important to look carefully when talking about this significant deviation in costs. The legislator does not define the term “material” in numbers here.

Good to know:

If the currently applicable case law is used as a basis, deviations of 15 to 20 percent are considered insignificant. This means that in the event of an insignificant deviation, you will carry out a normal billing of the costs .

Non-binding Meaning 1