Tender- How Legally Defined?
Government Tender is an
offer to perform or do an act that the party making the offer is obliged to
perform. Tenders can be made of money or specific articles. These will be
considered separately.
Prerequisites for
submitting a valid tender
The lender of money. These are the requirements
to make a valid government tender:
l It
must be signed by someone who is capable of paying. If it's done by someone
else, it will not be sufficient.
l It
must be sent to the creditor who is able to receive it or to his authorized
agent.
l The
entire amount due must be offered in the United States lawful coin or in a
foreign lawful coin.
l A
tender in banknotes, provided that it is not opposed on the account, will be
accepted. In such cases, however, the amount to be tender must match what is
due. For example, a tender for a five-dollar note that demands change would be
unacceptable. A tender for four dollars of bank notes will not be accepted. A
tender is valid if it's made with a check enclosed in a letter. The plaintiff
requested a receipt in return, and the plaintiff returned the request for a
larger amount, without objection to the nature of his tender. Stock must be
tender when the debtor can transfer it. However, it is not a requirement that
it be transferred.
l A
term that was agreed to in favor of a creditor must expire. The offer should be
made at that time. If made after, it will only go in mitigation of damages. The
tender should be submitted before the day-light goes out completely.
l It
is necessary to fulfill the conditions under which the debt was contracted.
l The
place where the payment is to be made must be the place that was agreed upon.
If no such place exists, the tender should be sent to the creditor or his
agent.
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