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Which parties are bound by the terms of the tender when one party submits a tender?
The person submitting the tender
The person requesting the tender
Both parties
Neither partyAnswer is A. Why? Tender is invitation to treat and when the other party submits a tender it’s an offer, it shouldn’t be binding until accepted no?
Question is from SpecimenThe person that submits the tender is indicating that these are the terms upon which I am willing to be bound.
You are correct in that a binding obligation only arises on acceptance of the tender.
But the point of this question is to show that the tenderer is not able to change the terms of the tender once it has been submitted. That is, when the person asking for the tender is looking to assess the worthiness of the tender, these are the terms that are being considered and are not simply there to stimulate argument or amusement.
It’s a tricky one in that the tenderer is not bound to fulfil the tender details until the tenderee (?) has accepted. But until that time of acceptance, the tenderer is unable to amend the tender details and, in that respect, the tenderer is bound.
Is that OK?
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