Describe the effect of tender, its types and essentials

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Q.2      Describe the effect of tender, its types and essentials.

Ans:     There are two effects to tender as under.

(a)        The promisor is not responsible for non-performance.

(b)        The promisor does not loose his rights under the contract.

TYPES OF TENDER

There can be two types of tender as follows.

Types of Tender Meaning Effects
I.          Tender of goods or services

 

 

 

 

 

II.          Tender of money

Where the promisor offers to deliver the goods or services but the promisee refuses to accept the delivery

 

 

 

Where the promisor offers to pay the amount but the promisee refuses to accept the same.

(a)        Goods or services need not be offered again.

(b)        Promisor may sue the promisee for non¬performance.

(c)        Promisor is discharged from his liability;

(a)        Promisor is not discharged from his liability to pay the amount,

(b)        Promisor will not be liable for interest from the date of a valid tender.

 

 

 

ESSENTIAL OF A VALID TENDER

The essential of a valid tender are below:

a) UNCONDITIONAL

It must be conditional. Tender is said to be unconditional when it is made in according with the terms of the contract.

EXAMPLE:

X offers to deliver 100 bales of cotton to Y if Y sells his one machine to X. It is a conditional tender and hence invalid.

 

b) AT PROPER TIME

It must be at proper time, i.e. a stipulated time (if there is an agreement as to time) or during business hours (if there is no agreement as to time). Tender of goods or money before the due date is also a valid tender.

 

c) AT PROPER PLACE

It must be at proper place, i.e. at the stipulated place (if there is an agreement as to place) or promisee’s business place (if there is business) or at promisee’s residence (if there is no place).

 

d) REASONABLE OPPORTUNITY TO PROMISEE

It must give a reasonable opportunity to the promisee of ascertaining that the goods offered are the promisor is bound to deliver.

 

e) FOR WHOLE OBLIGATION

It must be for the whole obligation and not for a pan of the whole obligation. However, a minor deviation from the terms of the contract may not render the tender invalid.

EXAMPLE

Delivery of 100.10 tons of wheat in a contract for 100 tons of wheat is a valid tender but deliver of 120 tons of wheat is invalid tender.

 

f)          TO PROPER PERSON

It must be made to the promisee or his duly authorized agent. In case of several joint promisee’s, tender made to one of them has the same legal consequences as tender to all of them.

 

g)         OF EXACT AMOUNT AND IN LECAL TENDER

In case of tender of money, it must be of exact amount and in legal tender.

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