Enquiry, quotation and order

Hello my wonderful students! Today we are learning about three important things in buying and selling: Enquiry, Quotation, and Order. These are steps businesses take when they want to buy or sell goods. Imagine you want to buy a new phone; these are the things you and the seller will do.

Let’s start with Enquiry.

An enquiry is a letter or email written by a potential buyer (the person who wants to buy) to a potential seller (the person who wants to sell) requesting information about goods or services.

Think of it like this: You want to buy a bag of rice for your shop in Tejuosho Market. You don't know the price or if the seller even has it. So, you send a message (an enquiry) to the rice seller asking about the price of a bag of MamaGold rice, the different types available, and if they can deliver it to your shop.

It's usually the first step a buyer takes when they need to purchase something.

It helps the buyer compare prices and conditions from different sellers before deciding who to buy from.

An enquiry is NOT a promise to buy; it's just asking for information.

Next up is Quotation.

A quotation is a document issued by a seller to a potential buyer, stating the price, terms, and conditions under which specific goods or services will be supplied.

So, after you sent your enquiry about the MamaGold rice, the seller will send you a quotation. This document will tell you: 'A bag of MamaGold rice is N40,000. We can deliver it to Tejuosho Market for an extra N2,000. Payment is 50% upfront, and the rest on delivery. This price is only valid for 7 days.' This is the quotation.

It's the seller's response to an enquiry.

It gives the buyer all the details they need to make a decision, like price, delivery time, payment methods, and any discounts.

Once a buyer accepts a quotation, it becomes a binding agreement (a promise that must be kept) for the seller, meaning the seller must sell at that price and terms.

Finally, we have Order.

An order is a formal request from a buyer to a seller to purchase specific goods or services under agreed-upon terms and conditions.

After looking at quotations from different rice sellers, you decide to buy from the seller who sent you the N40,000 MamaGold rice quotation. You then send them an order. This is you telling them: 'Yes, I agree to your terms. Please send me 5 bags of MamaGold rice at N40,000 each, total N200,000, delivered to my shop in Tejuosho. I have paid the N100,000 upfront.' This is your order.

It shows the buyer's clear intention to buy.

It usually refers back to a specific quotation.

Once the seller accepts an order, a contract of sale is formed.

In simple terms: Enquiry is asking, Quotation is telling (the details), and Order is buying.

These three steps make sure that both the buyer and seller understand each other very well before any money changes hands or goods are moved. This helps prevent misunderstandings and disputes, which are common in markets like Onitsha Main Market or Balogun Market.

Knowing these terms will help you understand how businesses operate, from a small roadside shop to big companies like Dangote Cement. Keep studying hard, my brilliant students!