In the People`s Republic of China, the official renminbi currency is unlimited legal tender for all transactions. The law requires that a public entity or individual cannot refuse to use money to settle a public or private domestic debt. [23] The Bank Note Issue Act of 1893 allowed the government to declare a bank`s right to issue legal tender. This allowed the government to make such a statement in support of the Bank of New Zealand when the bank ran into financial difficulties in 1895 that could have led to its collapse. For 50p, 20p, 10p and 5p coins, the maximum amount accepted as legal tender is equal to the value of a “No Mixed Coin” plastic bank bag. The legal maximum amount for 2p and 1p coins is only 20p, not the £1 in the bank pocket for “bronze”. There are also some limitations to the use of small parts. For example, coins 1p and 2p only count as legal tender for an amount of up to 20p. The term “legal tender” comes from the Middle French tendre (verbal form), which means “to offer”. The Latin root is tender (stretching), and the meaning of tender as an offer is related to the etymology of the English word “extend” (hold outwards). [5] In general, Canadian dollar bank notes issued by the Bank of Canada and coins issued under the Royal Canadian Mint Act are legal tender in Canada. However, business transactions may be lawfully conducted in the manner agreed upon by the parties involved in the transactions. For example, convenience stores may reject $100 bills if they feel it puts them at risk of being counterfeited.

However, official policy suggests that retailers should assess the impact of this approach. In the event that no mutually acceptable form of payment can be found for the offer, the parties concerned should seek legal advice. [21] The following coins are NOT legal tender in the United Kingdom: U.S. coins and currencies (including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks) are legal tender for all debts, public duties, taxes and duties. Foreign gold or silver coins are not legal tender for debts. According to the Economic and Monetary Union of the Republic of Ireland Act 1998, which replaced the legal tender provisions that had been incorporated into Irish law in previous UK laws, “no person, other than the Central Bank of Ireland and such persons as may be designated by regulation by the Minister, shall be obliged to accept more than 50 euro or cent coins in a single transaction”. Council Regulation (EC) No 974/98 limits the number of coins that may be offered for payment to fifty. [24] The governments issuing the coins must establish the euro as the sole legal tender. Due to the different legal meanings of the term `legal tender` in different Member States and the possibility for contract law to prevail over legal tender, it is possible for traders to refuse to accept euro banknotes and coins in certain euro area countries (the Netherlands, Germany, Finland and Ireland). [25] National legislation may also impose restrictions on the maximum amounts that can be paid per coin or banknote.

The term legal tender only appears in normal conversation when it comes to Scottish currency. Legal tender has a very narrow and technical meaning and refers to the settlement of debts. Some jurisdictions allow contract law to take precedence over legal tender, allowing merchants to indicate, for example, that they do not accept cash payments. [2] Coins and banknotes are generally defined as legal tender in many countries, but personal cheques, credit cards and similar cashless payment methods are not. Some jurisdictions may include a particular foreign currency as legal tender, sometimes as exclusive legal tender, or at the same time as their local currency. Some jurisdictions may prohibit or restrict payments from non-legal tender. [ref. needed] In some jurisdictions, legal tender may be rejected as payment if there is no debt before the time of payment (the obligation to pay may arise at the same time as the offer to pay).

For example, vending machines and transport personnel are not required to accept the highest face value of the ticket.

You may also like