Tender of goods and services
When a promisor offers to deliver the goods or service to the promisee and the promisee refuses to take the delivery, it is said to be tender of goods or services,
Effect: If promisee does not accept a valid tender of goods and services, it has the following effects:
- The promisor is discharged from his obligation under the contract.
- The promisor need not offer the goods or services again.
- The promisor may sue promisee for non-performance
Tender of money
When the promisor offers to pay the amount and the promisee refuses to accept the same it is called valid tender of money.
Effect: If the promisee does not accept the valid tender of money, it has the following effects:
- The promisor will not be liable for any interest from the date of the valid tender of money.
- However the promisor is not discharged from his obligation under the contract to pay the amount but he can claim reasonable expenses for the inconvenience caused due to such rejection.