Non-binding Offer Definition and Meaning Part II

Non-binding Offer Definition and Meaning Part II

Formulations for a non-binding offer

You can use a non-binding offer or a corresponding release clause in different situations. When wording, you can highlight the differences here. Your restrictions can be as follows:

  • non-binding offer, which is limited in time
  • non-binding offer, which is limited in terms of quantity
  • non-binding offer, which is price restricted

Wording example for a non-binding offer

As described above, there are different formulations for a non-binding offer for different restrictions . Here are a few examples of such formulations for you.

Reason for the restriction Possible formulation Meaning of the wording
Price restriction
  • “Non-binding price”
  • “Subject to price change”
This signals that the prices quoted can still change afterwards
Time restriction
  • “Offer only valid until …”
  • “Valid offer only until …”
With this formulation of your non-binding offer, you limit the validity of the offer
Quantity restriction
  • “Only while supplies last”
  • “Delivery reserved”
This formulation you give to understand that a standing in the remaining free volume of supply not binding is

Important:

If you include the restriction ” while stocks last ” in your non-binding offer, you still have to make sure that this stock is not too small . If this is the case, this would represent a decoy offer and you are liable to prosecution for unfair competition . In order to avoid unfair competition, the legislature stipulates that your goods must last for two days .

Create a non-binding offer

As already mentioned, an offer is always legally binding. According to WHICHEVERHEALTH, the non-binding offer is an exception . However, this must be clear from the formulation. We have already shown you how you can do this in the example above. A non-binding offer releases you from a legal obligation to this offer, but this does not mean that you have to pay attention to certain things when preparing the offer. In any case, an offer belongs to the business letters as described in § 125 a HGB . This means that this offer, including the non-binding offer, must contain certain mandatory information.

Mandatory information for a non-binding offer

For an offer, including a non-binding offer, you must note the following mandatory information.

  • Your name and contact details
  • Your company address
  • your sales tax identification number, if available
  • Address of the recipient of the offer
  • Description of the goods or services
  • Precise indication of the amount
  • Indication of the price and the cost of freight and packaging
  • Validity date of the offer
  • Date of the preparation of the offer
  • Terms of payment and delivery time

Sample for a non-binding offer

As a freelancer or self-employed person, you always have to be able to come up with a reasonable offer. Often you only get an order when you create an offer. But this should not be completely underestimated, as the mandatory information alone shows. Therefore, it is not a bad thought if you use a sample or template to create an offer or a non-binding offer. This sample or this offer template is available for download free of charge on some pages . You are always on the safe side that you do not forget any mandatory information.

Reject the non-binding offer

As already explained, a non-binding offer is not legally binding. However, this does not mean that a non-binding offer has no legal consequences. If you make such a non-binding offer, you expect a counter offer from a potential customer . If such a potential customer agrees to your non-binding offer, you will again have to respond . If you do not respond to the customer’s answer, this is legally considered as consent and a contract is concluded between you. The so-called ” tacit declaration of intent ” is legal here” spoken. Specifically, that means that you have to react. However, since this is a non-binding offer, you do not have to fulfill this offer. But you have to inform the potential customer that for one reason or another it is not possible to accept the order from him.

Important:

If you do not want to carry out the customer’s order in response to your non-binding offer , it is sufficient if you notify the customer in writing . You don’t have to provide a reason for this. But it’s always good if you give the potential customer at least an explanation . This is especially important if you already have a business relationship.

Conclusion

If there is talk of a non-binding offer , then it is an offer that is not legally binding . Certain exemption clauses such as “non-binding offer” or “offer subject to change” are completely legal in business life and are also often used as instruments. If, on the other hand, a potential customer contacts you about a non-binding offer, you have to react to it. If you do not do this, the term “ tacit declaration of intent ” is used and a contract may otherwise be concluded. When submitting a non- binding offer, you have to make sure that all mandatory information is included as with a conventional binding offer.

Non-binding Meaning 2