Tender Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Tender, written in plain English, along with examples of how it is used.
What is Tender?
1\) An unconditional offer made by one to another to enter into the contract of transaction of goods or services at certain specified cost. Normally government bodies and business groups issues notices for quotes for specified goods or services from other businesses which is known as tender. 2) act of offering money or settlement for any dues or claims. 3) soft and delicate; easy to break
History and Meaning of Tender
The term "tender" in legal language primarily refers to an invitation made to a prospective supplier or contractor to submit an offer to supply goods or services. The term is common in the context of government procurement, where it is a crucial part of the competitive bidding process. Tenders may be open or limited, and can involve different stages, such as pre-qualification or negotiation. The objective of a tender is to ensure fairness and transparency in the procurement process, and to promote competition among suppliers.
The term "tender" also has another meaning in the legal context, which is the act of making an offer of payment or offering to settle a dispute. For example, an individual may tender a payment to a creditor to settle a debt or a defendant may tender a plea of guilty to a criminal charge.
Lastly, "tender" can be used outside of the legal context to describe something that is soft or delicate, that is easily damaged or injured.
Examples of Tender
- A government agency issues a tender for the construction of a new bridge. Prospective contractors have to submit detailed proposals, including cost estimates, within a specified timeframe.
- A company invites tenders for the supply of office furniture. Interested suppliers have to provide samples and a written offer that includes information on delivery times, warranties, and other relevant terms.
- A defendant in a lawsuit tenders an offer of settlement that includes payment of a specific amount to the plaintiff in exchange for dropping the case.
- An art collector receives a tender offer for a piece in their collection, meaning someone has offered them a sum of money without the piece ever going to auction.
- A chef prepares a tender, juicy steak that easily falls apart with a fork.
Legal Terms Similar to Tender
- Bid - an offer or proposal, like a tender, that is submitted in response to an invitation to bid or auction.
- Contract - a legally binding agreement between two or more parties that outlines the terms and conditions of a commercial transaction.
- RFP (Request for Proposal) - a formal invitation, usually issued by a government agency, to solicit bids or proposals from prospective suppliers or contractors.
- Quotation - a formal document that provides a potential customer with a price for a particular product or service.
- Settlement - a solution or resolution to a dispute between parties that is agreed upon outside of court.