IndianOil invites tenders from suppliers for office stationery, and supplier SL files its quotation on the stated terms. In contract-law terms, the invitation to tender and SL's quotation are respectively:

An invitation to tender is ordinarily an INVITATION TO OFFER, not an offer; the tender (quotation) submitted by the supplier in response is the OFFER. The acceptance by the inviting party (IndianOil) completes the contract. This distinction matters because liability only crystallises upon a valid offer followed by acceptance. However, if the tender notice makes the lowest bidder's acceptance binding, the notice itself may amount to an offer. In ordinary procurement, the first step is an invitation to offer, which is not an offer capable of acceptance.