Quotation Validity Period: Why Missing This Field Creates Legal Risk

You send a quotation. No expiry date. Six months later, the buyer accepts — at the original price. But your raw material costs have increased 30% since then.

This guide explains why quotation validity periods matter, what happens when you skip them, and how to protect both sides in international trade.

What happens when a quotation has no validity period?

A quotation without a stated validity period does not stay open forever. Under both common law and the UN Convention on Contracts for the International Sale of Goods (CISG), it remains valid for a "reasonable time." The problem is that what counts as reasonable depends on the product, the market, and the circumstances of the transaction.

According to CISG Article 18, an acceptance is only effective if it reaches the offeror "within the time he has fixed or, if no time is fixed, within a reasonable time, due account being taken of the circumstances of the transaction."

This means:

• Perishable goods: reasonable time may be days

• Machinery or equipment: reasonable time may be weeks

• Real estate or large projects: reasonable time may be months

The exact duration is determined by courts — after a dispute arises. Until then, both parties operate under uncertainty.

Why does quotation validity matter for pricing?

Raw material prices can shift dramatically in short periods. A price quoted months ago may no longer reflect current costs — or may even fall below the supplier's break-even point.

According to Gordian's RSMeans Data, U.S. structural steel prices rose 91% in 2021. In 2023, cold rolled steel prices swung over 50% within a single year. These fluctuations make open-ended quotations risky for suppliers.

For buyers, uncertainty also creates problems. If a supplier later claims the quote expired, the buyer may face unexpected price increases or delays in procurement.

What is the standard validity period by industry?

Validity periods vary by industry based on how quickly input costs change. According to industry practice data from DealHub and Your Order Book:

• General manufacturing: 30 days is the standard validity period

• Steel and raw material-sensitive industries: 15 days or shorter

• Software and stable-cost services: 60–90 days

These timeframes account for price volatility and give buyers enough time to make decisions without exposing suppliers to prolonged cost risk.

How does CISG treat quotation validity?

Under CISG Article 16(2)(a), an offer that states a fixed time for acceptance cannot be revoked during that period. This is different from common law in some jurisdictions, where an offeror can generally revoke an offer at any time before acceptance — even if a validity period was stated.

For international sales between CISG member countries (which include over 90 nations, such as the United States, China, Germany, and Korea), this means:

• Stating "Valid until [date]" makes your quotation irrevocable until that date

• The buyer has certainty that the price will be honored

• The supplier has a clear end date for the commitment

If no validity period is stated, the offer remains revocable and subject to the "reasonable time" standard — with all its ambiguity.

How should you set a quotation validity period?

The right validity period balances buyer decision time with supplier cost risk. Consider these factors:

• Input cost volatility: Higher volatility means shorter validity

• Buyer decision cycle: Complex purchases need more time

• Currency exposure: Cross-border deals may need shorter windows if exchange rates fluctuate

Best practice is to state the exact expiration date rather than a duration. "Valid until February 28, 2026" is clearer than "Valid for 30 days" — especially when time zones and communication delays are involved.

Quick checklist for quotation validity

• Always include a validity period on every quotation

• State an exact expiration date, not just a number of days

• Align validity with your industry standard (15–30 days for volatile materials)

• For CISG transactions, understand that stated validity makes the offer irrevocable

• Review and update expired quotations before accepting old orders

A quotation without a validity date is a quotation with undefined risk. One line removes the ambiguity for both sides.