A formal quotation is an offer made by one company to another, which outlines the goods and services, as well as the terms of any agreement. It’s a legally binding document that details the exact costs and timeline for any commercial transaction. Usually, these documents are prepared in a standardized format, including detailed pricing information and payment terms. Once accepted, both parties must adhere to the specifics of the quotation. With a formal quotation, businesses can rest assured knowing that their deals will be fair and consistent.