Are quatation and proforma invoice legal

[Former Member]

Hi Friends,

Please tell me whether quatation & proforma invoice are legal documents or not

Regards,

JM

[Former Member]

Both are legally binding documents. Quotation is considered legaly binding within the validity period and proforma invoice for the value it has been made for. Its used by importers t aarange for Foreign currency and take duty benefits by decalring the value in the proforma.

As far as quotation is concerned all prices and terms are concerned legally binding. But that does not mean that the company should supply if the order is placed. In such a case the order confirmation becomes a legally binding document based on which the buyer can sue the supplier.

regds

Jude

[Former Member]

Hi,

Performa invoice is not legal document qutation is legal document once u agreed to sell some product some price untill the valid period over it will highly legal document.

Best regards,

venkataswamy.

[Former Member]

Hi there,

Quotation is a legal doc. Coz it is a binding doc that allows the company to sell goods to the customers agreed upon conditions & that has a validity period.

Proforma invoice, I dont think it is a legal doc. Coz it is just used as a reference & will not have any A/c'g implications.

Regards,

Sivanand

[Former Member]

Hi JM

here we need understand two things.

1) customer is just enquired the product ( he just wants to know the price)

we have send the quation so and so price and so and so date is the delivery date but he has not accepted. this is not legal document.

2) he is accepted the quation and price delivery date and terms and conditions then we are going to deliver complete goods or partial. then it becomes a *Legal* Document

3) proforma invoice is also legal document because after Customer providing all legal documents then only we will send the goods to the customer. it will not post to the accounting document, but it is legal document for the orgnisation and the customer.

i hope you have understood.

Thanks

Surya

[Lakshmipathi]

Dear JM

Quotation is a legal document but not proforma. I mean, if the hard copy shows "Invoice" but you have generated proforma from SAP, then it is also a legal document from customer angle.

thanks

G. Lakshmipathi