A letter of quotation is a formal document issued by a seller or service provider in response to a request from a potential buyer, detailing the cost, terms, and conditions of a product or service. It typically includes the description of the items or services, pricing, discounts, payment terms, delivery schedule, and validity period of the offer.

This letter serves as a proposal and often acts as the basis for further negotiations or as an agreement when accepted by the buyer. It is an essential tool in business transactions, ensuring transparency and clarity between both parties.