Legal Question in Business Law in Maryland

Proposals vs. Contracts

I am writing to find out what is the difference between a proposal and contract. I have received both from a website designer. Is a proposal legally binding?


Asked on 10/26/07, 5:52 pm

1 Answer from Attorneys

Paula McGill Attorney at Law

Re: Proposals vs. Contracts

I don't have the "proposal" to review to give you a definite answer. However, IN GENERAL, a proposal is an offer to enter into a contract.

The method of acceptance of the proposal/offer is generally in the proposal. Sometimes, but not always, at the end of the proposal there is a section that the offeree can sign to convert the proposal into a contract.

Because proposals are different, including the length of time the offeree has to accept to the proposal, you should read the proposal or talk with the website designer. Also, depending on the terms of the proposal and the type of pending contract, a verbal acceptance of the offer is sufficient to form a contract.

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Answered on 10/26/07, 6:02 pm


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