Tender of performance, also known as tendering for performance, is a legal term that refers to the act of offering to perform one`s obligations under a contract. It is a critical aspect of contract law that ensures both parties are aware of their duties and responsibilities and that they are fulfilled adequately.
In a typical contract, the parties involved make certain promises or commitments to each other. The tender of performance is the process by which one party offers to fulfill these commitments, and the other party accepts the offer. Essentially, the act of tendering performance is the beginning of the process of fulfilling a contract.
In some cases, the tender of performance may be required before the contract can be considered valid. For instance, if a contract stipulates that payment is due upon delivery of a product, the vendor must offer to deliver the product before they can request payment from the buyer. Failure to tender performance may result in a breach of contract.
The tender of performance also serves to establish the parties` level of commitment and accountability. Once the offer is made, the other party can choose to accept, reject, or modify the offer. If the party rejects the offer, the contract may be terminated, unless otherwise stated in the contract terms. Moreover, if the offer is accepted, the party making the offer is committed to fulfilling the obligations under the contract.
Tender of performance may also include conditions, such as the quality and quantity of goods to be delivered or the time frame for delivery. These conditions must be met to ensure that the contract is fulfilled, and if not met, it may also result in a breach of contract.
In conclusion, tender of performance is a vital aspect of contract law that ensures that both parties are aware of their obligations and responsibilities under a contract. It also serves to establish the parties` level of commitment and accountability and ensures that the contract is adequately fulfilled. Therefore, it is essential to understand the concept of tender of performance when entering into any contractual agreement.