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In a legal context, a tender is a formal offer made by one party to another to fulfill contractual obligations, usually involving the supply of goods or services at a specified price and time. It often refers to the bidding process where companies submit proposals to win contracts. A tender outlines the terms and conditions under which the offer is made, serving as a basis for forming a binding agreement once accepted.

A tender, on its own, does not create a binding contract. It becomes legally binding only when the party requesting the tender formally accepts the offer. Submitting a tender expresses an intention to enter into a contract under specific terms, but until acceptance, either side can withdraw. Once accepted, the tender’s terms become part of a binding agreement, establishing enforceable rights and obligations between the parties.

Legal tender is money that the law recognizes as acceptable payment to settle debts and obligations in court. Currency refers to the physical money—such as coins and banknotes—used in everyday trade. While all legal tender is currency, not all currency necessarily qualifies as legal tender depending on jurisdiction or transaction type. Legal tender specifically dictates what must be accepted to satisfy financial debts.

For a tender to be legally valid, it must be a clear and unconditional offer, without any qualifications or restrictions. It should be submitted within the specified deadline and adhere strictly to the format and requirements outlined in the tender documents. Additionally, the tender must demonstrate the bidder’s genuine ability to perform the contract and a sincere intention to be bound by its terms if accepted.

Tendering types include open tendering, where anyone can submit bids; selective tendering, which limits invitations to chosen bidders; and negotiated tendering, involving direct discussions with one or more parties. Other types include single-stage and two-stage tendering, depending on how proposals and pricing information are submitted. Each method suits different contract needs and levels of competition.