Also known as: tenders of performance · tender
Written by attorneys · grounded in primary & secondary sources — see below
A demonstration by an obligor of readiness, willingness, and ability to perform a contractual obligation. The demonstration typically occurs by offering to pay money due, deliver goods, return property, or satisfy another duty at the time and place required by the agreement.
Tanner Thompson, a contractor, completed highway work for State A and demanded payment in U.S. dollars. State A refused and offered only state-issued scrip. Thompson sued, claiming the state's refusal to accept federal currency violated constitutional limits on what may serve as payment. The court examined whether the state's action constituted an improper restriction on tender.
Talia Torres held shares in Titan Industries. When a rival made a cash tender offer, the board recommended that shareholders tender their shares. Torres submitted her certificates and received the offered price per share within the stated window.
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True North Logistics mistakenly took a forklift belonging to Tidal Energy. Upon discovery, True North offered to return the forklift immediately. The court considered whether the prompt offer reduced the damages Tidal Energy could recover for conversion.
Tyrone Tran contracted to buy grain from Trinity Pharmaceuticals at a designated warehouse. When the seller failed to deliver, the buyer sued for damages. The court fixed market price at the warehouse, the contractually specified place for tender.
Tamara Tan fell behind on her home mortgage. Two days before the scheduled foreclosure sale she offered the lender all amounts that would have been due absent acceleration plus accrued expenses. The lender accepted the tender and canceled the sale.
Theodore Tucker converted a vehicle under a good-faith belief it belonged to him. The day after learning of the error he offered to return the vehicle and kept the offer open. The court reduced the owner's damages because the tender satisfied the promptness requirement.
The party must demonstrate readiness, willingness, and ability to perform at the required time and place. Courts examine whether the offer was unconditional and whether the performing party had the means to complete the obligation.
Supporting sources
A proper tender places the other party in breach if it refuses to accept performance. The tendering party is then excused from further performance and may sue for breach.
Supporting sources
A prompt tender of return after a good-faith mistake may reduce the damages recoverable by the owner if the chattel's value is not substantially impaired and the tender remains open.
…was generally thought that the Takings Clause of the Fifth Amendment reached only a "direct appropriation" of property, Legal Tender Cases , 12 Wall. 457, 531 (1871), or the functional equivalent of a "practical ouster of [the owner's] possession," Transportation Co. v. Chicago , 99 U. S. 635, 642 (1879). Mahon was…