What is Tender of Delivery?
What does tender of delivery mean under UCC?
What are the essential elements you should know!
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What Is A Tender of Delivery
The notion “tender of delivery” means that a seller of goods places goods purchased by the buyer at the disposition of the buyer and notifies the buyer that he or she can take delivery of the goods.
For a seller to tender delivery, the seller will be required to:
- Put and hold the goods
- At the buyer’s disposition
- Give the buyer a tender notification
- To allow the buyer to take delivery of the goods
Typically, the parties will mutually agree on the terms and conditions related to the delivery of the goods.
Tender of Delivery Definition
According to the Merriam-Webster dictionary, tender of delivery is defined as:
An offer of goods by a seller to a buyer that consists of putting and holding them at the disposition of the buyer and giving the buyer any notification reasonably necessary for taking delivery
In the context of a contract of sale of goods, the seller’s main obligation is to deliver the goods to the buyer.
Alternatively, the seller must offer a tender of delivery allowing the seller to hold the goods so the buyer can take possession of the same.
Tender Delivery vs Delivery
What is the difference between tender of delivery and delivery?
When there’s a sale of goods, the seller has the obligation to ensure the buyer gets the goods purchased.
In some cases, the seller is required to ship the goods to the buyer (this is what we refer to as the “delivery” of goods).
In other cases, the seller can hold the purchased goods and provide the buyer notification that he or she can come and take possession of the goods (this is what we refer to as “tender of delivery”).
Tender of Delivery Example
Let’s look at an example of tender of delivery to better illustrate the concept.
Imagine that a merchant orders 100 units of electronic parts from a supplier.
The contract states that the seller does not have an obligation to deliver the goods to the buyer, rather when the goods are available, the seller will notify the buyer to pick them up from the seller’s warehouse.
Approximately one week from the execution of the contract, the seller provides the buyer with a tender notification informing the buyer to pick up the 100 units between 9 a.m. to 5 p.m. from Monday to Friday during the next thirty days directly at the seller’s warehouse.
In this case, the seller is holding the goods and allowing the buyer to take possession at a reasonable hour and for a reasonable period of time.
Tender For Delivery Takeaways
So there you have it folks!
What is tender of delivery?
What does tendered for delivery mean?
Here is how we define tender of delivery:
- The seller of goods or a merchant has and holds goods conforming to the contract at the disposable of the buyer
- And provides the buyer a reasonable notice enabling the buyer to take delivery of the goods
Typically, the goods provided for in the contract will be tendered in a single delivery unless the seller is required or can deliver in installments.
If you need legal advice on the delivery of goods, the tender notification, or your rights and obligations, you should consult a qualified contract lawyer.
Good luck!
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Now, let’s look at a summary of our findings.
Tender Goods Meaning
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