Legal Tender

Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency and coins are common forms of legal tender in many countries. The origin of the term "legal tender" is from Middle English tendren, French tendre (verb form), meaning to offer. The Latin root is tendere (to stretch out), and the sense of tender as an offer is related to the etymology of the English word extend (to hold outward). The noun form of a tender as an offering is a back-formation of the noun from the verb.

Legal tender is variously defined in different jurisdictions. Formally, it is anything which when offered in payment extinguishes the debt. Thus, personal cheques, credit cards, debit cards, and similar non-cash methods of payment are not usually legal tender. The law does not relieve the debt obligation until payment is accepted. Coins and banknotes are usually defined as legal tender. Some jurisdictions may forbid or restrict payment made other than by legal tender. For example, such a law might outlaw the use of foreign coins and bank notes or require a license to perform financial transactions in a foreign currency.

In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment (where the obligation to pay may arise at the same time as the offer of payment). For example vending machines and transport staff do not have to accept the largest denomination of banknote. Shopkeepers may reject large banknotes: this is covered by the legal concept known as invitation to treat. However, restaurants that do not collect payment until after a meal is served must accept that legal tender for the debt incurred in purchasing the meal.

The right, in many jurisdictions, of a trader to refuse to do business with any person means a purchaser may not insist on making a purchase and so declaring a legal tender in law, as anything other than an offered payment for debts already incurred would not be effective.

Read more about Legal Tender:  Demonetisation, Withdrawal From Circulation, Commemorative Issues

Other articles related to "tender, legal tender":

Currency Of Colombia - Monetary Laws of 1863–1867 - Monetary Law of 1867
... of May 2, 1867 President Mosquera made Treasury notes a forced tender, making them equivalent to a national monetary unit ... The 2, 1, and 1/2 décimo coins were legal tender only to 10 pesos, but the 1/2 peso, only 835 fine, was unlimited legal tender and this would become a problem when the price of silver began falling ... Copper was made legal tender to 2 décimos among individuals, but was received without limit by public offices ...
Legal Tender (song)
... "Legal Tender" is the first single released by The B-52's from their 1983 album Whammy! ... Musically, "Legal Tender" is an upbeat synthesizer-fuelled track with a drum machine and hand-clap rhythm ... "Legal Tender" was performed live in the set of the Whammy! tour, with Keith Strickland on synthesizer and with horn parts added ...
Leather Currency - Issue of Banknotes
... domestic circulation, even though they are not fiat money or declared in law as legal tender anywhere ... The UK's central bank, the Bank of England, prints notes which are legal tender in England and Wales these notes are also usable as money (but not legal tender ...
Legal Tender Status By Country - United States
... Before the Civil War (1861 to 1865), silver coins were legal tender only up to the sum of $5 ... This is the reason for the $5 limit of silver coins as legal tender paying somebody $100 in the new silver coins would be giving them $96 worth of silver. 1862 greenbacks (Legal Tender Notes) at first traded for 97 cents on the dollar but gained/lost value depending on fortunes of the Union army ...
Legal Tender Cases - Background About Constitutionality of Paper Money - Original Intent and Original Meaning
... the original meaning of the Constitution, the issuance of paper money as legal tender would be unconstitutional, sending our economy into disarray." Regarding paper money, Nathaniel Gorham explained at the ... nor did the Supreme Court adopt such an interpretation in the Legal Tender Cases or subsequently ... would not allow the federal government to use paper as currency or legal tender, though there is no indication whether or not the contents of his ...

Famous quotes containing the words tender and/or legal:

    That good disposition which boasts of being most tender is often stifled by the least urging of self-interest.
    François, Duc De La Rochefoucauld (1613–1680)

    The steps toward the emancipation of women are first intellectual, then industrial, lastly legal and political. Great strides in the first two of these stages already have been made of millions of women who do not yet perceive that it is surely carrying them towards the last.
    Ellen Battelle Dietrick, U.S. suffragist. As quoted in History of Woman Suffrage, vol. 4, ch. 13, by Susan B. Anthony and Ida Husted Harper (1902)