Also known as: formal tenders · tender
Written by attorneys · grounded in primary & secondary sources — see below
A formal offer of performance or payment that meets all contractual or legal requirements for discharging a duty or triggering reciprocal obligations. It must be unconditional, made at the proper time and place, and accompanied by the ability and willingness to complete the act. Courts treat a valid formal tender as satisfying conditions precedent and limiting damages or preserving rights.
State legislators enact a statute declaring state-issued scrip acceptable for all private debts. A creditor refuses the scrip and sues for payment in gold. The court holds the statute invalid because the state attempted to designate something other than gold or silver as legal tender.
Fusion Power's board approves a merger plan and submits it to shareholders with a recommendation to tender shares to the acquirer. Shareholders who follow the recommendation complete the tender and receive the merger consideration while those who refuse retain their shares subject to the plan's terms.
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Fernando Farrell converts a machine from Foster Forge under a good-faith mistake about ownership. After discovery, he promptly offers to return the machine in undamaged condition. The court reduces the conversion damages because the tender satisfies the statutory conditions for mitigation.
Frontier Capital contracts to buy goods with delivery at its warehouse. The seller repudiates before tender. The buyer proves damages using market price at the warehouse location. The court accepts that figure because the place for tender controls the market-price calculation.
Felicia Fuentes defaults on a home loan and faces foreclosure. Two days before the sale she tenders all amounts that would have been due absent acceleration plus foreclosure expenses. The lender must accept the tender and cancel the sale because the cure requirements are satisfied.
Frank Fisher converts equipment under a reasonable mistake. Upon learning the facts he immediately offers return of the equipment and keeps the offer open. The court allows reduction of damages because the tender meets the promptness and openness requirements.
A formal tender requires unconditional presentation at the proper time and place together with present ability and willingness to perform. A mere offer lacks one or more of these elements and does not discharge the duty or trigger the other party's obligations.
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Yes. Once a proper tender is made and kept open, interest and consequential damages cease to accrue because the tendering party has satisfied the condition for performance.
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The tender must occur promptly after discovery of the mistake and must remain open. It also requires good-faith conversion and no substantial impairment of value.
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Market price for damages is measured at the place designated for tender. When goods are rejected after arrival the place of arrival controls instead.
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The borrower must tender all amounts due absent acceleration, foreclosure expenses listed by the creditor, and any permitted late fees.
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…which the States are respectively entitled, or permit the States to "coin money" or to "make anything but gold and silver coin a tender in payment of debts." But where constitutional grants and limitations of power are set forth in general clauses, which afford a broad outline, the process of construction is essential to…