tender-letter

# Formal Tender Letter

Drafts a litigation-grade tender letter that serves as official notice of payment or performance, creating a protective legal record while demonstrating good faith.

## Prerequisites

Gather before drafting:

- **Governing contract** — execution date, parties, contract number, payment/performance provisions
- **Financial docs** — invoices, payment schedules, purchase orders, amounts, terms
- **Correspondence history** — demands, default notices, cure notifications, resolution attempts (chronological)
- **Tender logistics** — wire instructions, bank details, delivery addresses, account numbers
- **Party identification** — full legal names, capacities, authorized representatives, contact info

## Quick Start

Follow this section order: Header → Tender Statement → Factual Context → Legal Foundation → Consequences → Reservation of Rights → Acceptance Instructions → Signature.

## Drafting Workflow

### 1. Header & Party Identification

- Sender and recipient: full legal name, capacity, address, email, phone
- Agreement reference: contract number, execution date, parties, specific obligation

### 2. Formal Tender Statement

- [ ] State this constitutes a **formal legal tender under applicable law**
- [ ] Specify exact amount, currency, and obligation satisfied
- [ ] Reference invoice numbers, payment schedules, or milestones from source docs
- [ ] Detail tender method (wire transfer, certified bank draft, cashier's check)
- [ ] Confirm unconditional readiness to perform per agreement terms
- [ ] Include **without-prejudice language** preserving all rights, defenses, and remedies

### 3. Factual & Chronological Context

Narrate obligation history with specific dates and document citations:

- Inception of obligation
- Prior demands and correspondence (quote relevant passages)
- Default/breach notices and cure periods
- Resolution/negotiation attempts
- Sender's compliance efforts
- Recipient failures or delays

### 4. Legal Foundation

- [ ] Cite specific contract provisions by section number
- [ ] Quote pertinent contractual language
- [ ] Reference applicable statutes or common law principles
- [ ] Assert tender constitutes **complete, timely, and lawful fulfillment**
- [ ] State acceptance discharges sender's liability in full

### 5. Consequences of Refusal

Notify recipient that wrongful rejection may trigger:

- **Interest cessation** — stops accruing from tender date
- **Cost shifting** — costs and attorney's fees shift to recipient
- **Loss of remedies** — recipient forfeits non-performance remedies
- **Damages liability** — liability for wrongful rejection damages
- **Breach defense** — establishes sender's defense to breach/default claims

### 6. Reservation of Rights

Reserve all rights, remedies, claims, and defenses including:

- Declaratory relief confirming tender sufficiency
- Damages for breach
- Reimbursement of costs
- Any other relief at law or in equity

### 7. Acceptance Instructions

- [ ] Specify how, where, and when payment/performance will be delivered
- [ ] Provide bank account details, delivery address, or transfer logistics
- [ ] Set acknowledgment deadline: **7–14 business days** from letter date
- [ ] Request written confirmation of acceptance

### 8. Signature Block

Include full legal name, title/capacity, entity name (if applicable), and execution date. Consider notarization or witness signatures based on amount at stake.

## Pitfalls

- **Vague amounts** — always use exact figures with currency; never approximate financial terms
- **Admission of liability** — do not include language construable as admitting liability beyond the specific obligation tendered
- **Missing without-prejudice language** — omitting this forfeits rights preservation
- **Weak evidentiary grounding** — every factual assertion must cite a specific document, date, or contract section
- **Adversarial tone** — maintain professional good faith; the letter must advance both settlement likelihood and litigation readiness
- **Jurisdiction** — default to U.S. law; flag state-specific tender statutes (e.g., UCC § 2-511 for goods) where relevant