What does 'tender performance' mean in contracting?

Tender performance refers to the act of making a formal offer to fulfill the obligations set forth in a contract. This concept is crucial in contract law, as it signifies readiness and willingness to perform according to the terms agreed upon by the parties involved. When one party tenders performance, they are essentially notifying the other party that they are prepared to execute their part of the agreement.

This act of offering to perform can be important for triggering specific rights and obligations under the contract, such as the expectation that the other party will either accept performance, which would lead to the completion of the contractual obligations, or respond in some manner regarding the acceptance of that performance. Tender performance shows that the party is abiding by the contractual terms and is proactive in ensuring that the agreement is honored.