The Collaborative International Dictionary of English v.0.48:

Quip \Quip\, v. t. [imp. & p. p. Quipped; p. pr. & vb. n.
   Quipping.]
   To taunt; to treat with quips.
   [1913 Webster]

         The more he laughs, and does her closely quip.
                                                  --Spenser.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Quip \Quip\, v. i.
   To scoff; to use taunts. --Sir H. Sidney.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Quip \Quip\ (kw[i^]p), n. [Cf. W. chwip a quick flirt or turn,
   chwipio to whip, to move briskly, and E. whip. Cf. Quib,
   Quibble.]
   1. A smart, sarcastic turn or jest; a taunt; a severe retort;
      a gibe.
      [1913 Webster]

            Quips, and cranks, and wanton wiles.  --Milton.
      [1913 Webster]

            He was full of joke and jest,
            But all his merry quips are o'er.     --Tennyson.
      [1913 Webster]

   2. A short humorous or witty comment or observation, usually
      spontaneously formed in response to a prior comment.
      [PJC]

WordNet (r) 3.0 (2006):

quip
    n 1: a witty saying [syn: epigram, quip]
    2: witty remark [syn: wisecrack, crack, sally, quip]
    v 1: make jokes or quips; "The students were gagging during
         dinner" [syn: gag, quip]