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Tender of defense is a term used in the insurance industry to refer to the process by which an insured party requests that their insurer assume responsibility for defending against a legal claim or lawsuit.
Also known as a tender guarantee. A guarantee (typically a bank guarantee), for a specified price or a specified percentage of the tender price, issued on behalf of a seller to guarantee that the seller will not withdraw their bid from the tendering process before a binding contract is concluded.
Traditionally, a distinction is made between: Real guarantees relating to assets having an intrinsic value. Personal guarantees involving a debt obligation for one or more people. Moral guarantees that do not provide the lender with any real legal security.
A written document issued by the Bank at the request of the tenderee for bids of construction and procurement of project, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee within the preset time once winning
Tendering usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. The word tender can also refer to the acceptance of a formal offer, such as a takeover bid.
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To request a guarantee, the account holder contacts the bank and fills out an application that identifies the amount of and reasons for the guarantee. Typical applications stipulate a specific period of time for which the guarantee should be valid, any special conditions for payment and details about the beneficiary.