legal tender


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Legal Tender

Anything that a jurisdiction has declared to be money. Historically, legal tender currency has been based on something like gold or silver; however, most money is now fiat money. That is, fiat money is that which has been declared to be legal tender by a government and would not be regarded as such without government backing. Legal tender may be used to pay a debt. In general, a merchant who does not accept legal tender currency has the debt canceled; that is, one is required to accept the legal tender or nothing at all.

legal tender

that part of a country's MONEY SUPPLY which, in the eyes of the law, is totally acceptable in discharge of a payment or debt. Coins and banknotes (CURRENCY) issued by the government fulfil this requirement. By contrast, a dealer or creditor is within his legal rights to refuse to accept as payment for a purchase or repayment of a debt a cheque drawn against a bank account.

legal tender

that part of a country's MONEY SUPPLY that is, in the eyes of the law, totally acceptable in payment for a purchase of a good or service or repayment of a debt. CURRENCY (BANK NOTES and COINS) issued by the government fulfil this requirement. By contrast, a trader is within his legal rights to refuse to accept as payment a cheque drawn against a BANK DEPOSIT. See MINT.
References in periodicals archive ?
Grant's attorney general then petitioned the Court to retry the legal tender issue with two new cases, Knox v.
legal tender or by customer's check is made for prior delivery when customer accepts delivery once a week or every seven days (also known as drop to drop terms).
Starting from June 25, 2019, the coin denomination of 10 Leke, with a legal tender, issue of 2018, will be used as a means of payment in parallel with all the existing metal coins in circulation of this cut, previous years issue.
"It's beyond time we give legal force to the well-known phrase 'that's legal tender, pal'.
The round coins, which have been in our wallets since 1983, will be no longer be legal tender at 11.59pm on Sunday, October 15.
"We are urging the public to spend, bank or donate their old pound coins and asking businesses who are yet to do so to update their systems before the old coin ceases to be legal tender."
Friday May 5 marks the last day that the banknote featuring prison reformer Elizabeth Fry will be legal tender. Around 155 million are still in circulation.
ISLAMABAD -- The State Bank of Pakistan (SBP) on Wednesday said that as per Federal Government's Gazette Notification dated 4th June, 2015, the old design banknotes will cease to be legal tender with effect from 1st December 2016.
ISLAMABAD -- State Bank of Pakistan (SBP) on Wednesday said that as per Federal government's gazette notification of June 4, 2015, the old design banknotes would cease to be legal tender with effect from December 1, 2016.
KARACHI -- The old design banknotes will cease to be legal tender with effect from December 1, 2016 as per Federal GovernmentA-A?A1/2s Gazette notification dated June 4, 2015, therefore, it has now been decided to phase out all remaining old design banknotes of Rs 10, 50, 100 and 1,000.
On Twitter, Jamie Cochrane said: "Surely this is legal tender in England as we Scots are British after all.
One of the police officers gave her a 5p coin to make her offer legal tender.