This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
There is some conflict of authority as to whether a tender of the full amount of a negotiable instrument is insufficient when coupled with a demand for the surrender thereof. The better rule is that as the holder of the instrument ought to surrender it on payment, such tender is sufficient.1
In some cases demand for the surrender of the negotiable instrument is regarded as imposing a condition which renders the tender insufficient. If there is a dispute as to the amount due upon the negotiable instrument, a demand for its surrender by the payee is said to render the tender insufficient.2 Some authorities hold that a demand that a note should be surrendered where the note is mislaid3 or not in the possession of creditor's attorney on whom such demand is made, this fact being known to the debtor,4 makes the tender insufficient by adding a condition that the law does not require.