What a quote is in legal terms
A quote is your proposal for a contract: this service at this price. Once your customer accepts it, the contract is made. That is why care pays off. What the quote says, you owe after the acceptance, and what it leaves out, you will have to negotiate later.
Under § 145 BGB you are bound by your quote as soon as it has reached your customer. You cannot simply withdraw it or change the price. The binding effect ends when your customer declines or does not accept in time (§ 146 BGB).
How long your quote holds
How long your customer can accept is best decided by you. If you set a deadline, for example “This quote is valid until November 15, 2026”, they can accept only until then (§ 148 BGB). After that you are free.
Without a deadline, § 147 (2) BGB applies: your customer can accept a quote sent by email or post only as long as you could expect their answer under normal circumstances. How long that is depends on the case, and nobody enjoys arguing about it. A clear deadline spares you that. Choose one that fits your project, such as two or four weeks.
If the acceptance comes too late or with changes, say “yes, but for 10% less”, § 150 BGB treats it as a new offer from your customer to you. A contract comes about only once you agree.
“Freibleibend” and “unverbindlich”
If you do not want to be bound, for instance because you do not know your capacity yet, you can exclude the binding effect (§ 145 BGB). German quotes do this with words like “freibleibend” or “unverbindlich” (without obligation). Your letter is then more of an invitation for the customer to order from you. The contract usually comes about only when you confirm their order.
For most freelancers a binding quote with a deadline is the better choice. Your customer knows where they stand, and you know until when to keep the time free.
What belongs in a good quote
The law prescribes no form for a quote. These details make it clear and carry over into an invoice later without extra work:
- Your details and your customer’s: name, address, contact person.
- Quote number and date, so you can both refer to it later.
- A subject that names the project.
- The service, as concretely as possible: what is included, how many rounds of revisions, which format, which usage rights. Write down what is not included too.
- Quantity, unit and price per line, for hourly work with the hourly rate and a realistic estimate.
- Net, VAT and gross. If you quote to private customers, § 3 PAngV requires the total price including VAT.
- Schedule or delivery date.
- Valid until and your payment terms, such as a deposit at project start. More in the guide to payment terms and cash discounts.
Items to choose from help: optional maintenance, or a bigger package as an alternative. Your customer sees the options without the total becoming confusing.
Common stumbling blocks
- A vague scope. “Website design” leaves open how many pages, templates and revisions are included. Every open point becomes extra work you may not be able to bill.
- No word on usage rights. In creative work, the rights are often worth as much as the work itself. State who may use the result, where and for how long.
- Prices without a unit. “€80” alone is unclear. Write “€80 per hour” or “€1,200 flat rate”.
- Extra costs. Travel, licenses or printing belong in the quote, or at least a note that they are billed separately.
A quote is not an invoice
The invoice requirements of the VAT Act do not apply to a quote, and it gets no invoice number. Only the invoice after the work is done must carry the invoice requirements.
VAT still belongs in the quote. A business thinks in net amounts, a private person in what they pay in the end. If you use the small business rule, say that no VAT is charged.
After the acceptance: order confirmation and invoice
Once your customer accepts, the contract is made. An order confirmation is not required, but it helps when something was changed verbally: it records in writing what you agreed.
After the work is done, the quote becomes the invoice. Carry over exactly the items your customer accepted. For longer projects you can send partial invoices along the way, see partial and final invoices. What the invoice itself looks like is in the guide on how to write an invoice.
A word on the cost estimate
For contracts for work, German law knows the cost estimate (Kostenanschlag). Unless agreed otherwise, it is not paid for (§ 632 (3) BGB). If it turns out that the costs will substantially exceed the estimate, you must tell your customer without delay, and they may terminate the contract (§ 649 BGB). If you estimate the effort rather than quote a fixed price, tell your customer early as soon as you see it growing.
This guide explains the rules in general and is not legal or tax advice.
Common questions
May I charge for a quote?
A quote is usually free, and for a cost estimate § 632 (3) BGB says so expressly. If you want to be paid for substantial preparatory work such as concepts or drafts, agree on that expressly with your customer beforehand.
Is an acceptance by email binding?
Yes. For most freelance jobs the law prescribes no form; an acceptance by email is enough, even a verbal one. A written acceptance helps you, though, if you later disagree about the scope. So ask your customer to confirm briefly by email.
What do I do if the customer accepts after the deadline?
Their acceptance is then a new offer to you (§ 150 (1) BGB). If the job still suits you, confirm it, ideally with an updated quote or an order confirmation.