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An example of tact would be relating to someone a potentially embarrassing detail of their appearance or demeanor without causing them distress.
Tact is a form of interpersonal diplomacy. Tact is the ability to induce change or communicate hurtful information without offending through the use of consideration, compassion, kindness, and reason.
A tactful person can tell you something you don't want to hear and you will be thankful for the information when they are finished.