Legal Definitions - tender

In legal terms, tender refers to an unconditional offer to provide money or perform an action to fulfill a legal obligation or satisfy a debt. It signifies that a party is ready, willing, and able to meet their commitment, even if the other party refuses to accept it. The act of tendering demonstrates a good-faith effort to complete an agreement or settle an outstanding duty.

• Example 1: Real Estate Purchase

  Imagine a scenario where Sarah has signed a contract to buy a piece of land from John for $200,000. On the agreed-upon closing date, Sarah's attorney presents a cashier's check for the full $200,000 to John's attorney, along with all the necessary signed documents to complete the sale.

  This action by Sarah is a tender of the purchase price. She is making an unconditional offer of the money required to fulfill her contractual obligation to buy the land. Even if John were to suddenly change his mind and refuse to sell, Sarah has legally demonstrated her readiness and ability to complete her part of the agreement.

• Example 2: Loan Repayment

  Consider a situation where a small business, "Innovate Tech," owes a bank $50,000 for a business loan. On the loan's maturity date, Innovate Tech initiates an electronic transfer of exactly $50,000 from its account to the bank's designated loan repayment account, clearly referencing the loan number.

  This electronic transfer constitutes a tender of payment. Innovate Tech is unconditionally offering the money to satisfy its debt obligation to the bank. If, for some reason, the bank's system failed to process the payment or the bank later claimed non-payment, Innovate Tech could provide evidence of its valid tender, showing it made a good-faith effort to repay the loan.

• Example 3: Service Contract Fulfillment

  Suppose a marketing agency, "Creative Campaigns," is hired by a client to design and deliver a complete social media campaign package, including graphics, ad copy, and a posting schedule, by a specific deadline. On the deadline day, Creative Campaigns sends an email to the client with all the final campaign assets attached, stating that the project is complete and ready for implementation as per their agreement.

  The agency's delivery of the completed campaign assets is a tender of performance. They are unconditionally offering the agreed-upon service to fulfill their contractual obligation. This demonstrates their readiness to complete the project and allows them to claim payment, even if the client delays in reviewing or using the materials.