What Does Legal Tender Requirement Meansadmin
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.  The small Republic of the Marshall Islands (RMI) has also announced that it will introduce a new cryptocurrency, Sovereign, as legal tender. The state will be tied to an existing, decentralized peer-to-peer cryptocurrency market. Currently, the U.S. dollar acts as currency and legal tender in the RMI and will continue to do so alongside the new legal tender when the government begins issuing states.
Federal Reserve banknotes and circulation coins are the most common legal tender in the United States. The Federal Reserve Act of 1913 replaced all other fiat currencies with Federal Reserve banknotes. They are made of linen and cotton, so their real value is much lower than their monetary value. This is ideal for legal tender. You never want the intrinsic value of the offer to be greater than the value assigned. There are different forms of legal tender that are accepted in the United States. The history of banknotes in New Zealand has been much more complex. In 1840, the Union Bank of Australia began issuing banknotes under British law, but these were not automatically legal tender. In 1964, the Reserve Bank of New Zealand Act stipulated that only notes issued by the Reserve Bank were legal tender. The Act also ended the right of individuals to redeem their banknotes for coins, thereby eliminating the distinction between coins and banknotes in New Zealand.
The Act came into force in 1967 and established as legal tender all banknotes of five dollars in New Zealand dollars and above, all decimal coins, predecimal pence, shilling and guilder. The Decimal Currency Act, which created the basis for a decimal currency introduced in 1967, was also passed in 1964. The Australian dollar, consisting of banknotes and coins, is legal tender in Australia. Australian banknotes are legal tender under the Reserve Bank Act 1959, p.36(1), with no limit on the amount. The Currency Act 1965 also provides that Australian coins intended for general circulation are also legal tender, but only in the following amounts: The Swiss franc is also legal tender of the Principality of Liechtenstein, which is linked to Switzerland in a customs union. In 1847, the Colonial Bank of Issue became the sole issuer of legal tender. In 1856, however, the Colonial Bank of Issue was dissolved; and the Paper Currency Act of 1856 reconfirmed the legal tender of the Union Bank. The law also allowed the Eastern Bank to issue legal tender, but this bank ceased operations in 1861. The Swiss franc is the only legal tender in Switzerland.
Any payment of up to 100 Swiss coins is legal tender; Banknotes are legal tender for any amount.  New Zealand has a complex history of legal tender. English law applied either from 6 January 1840 (when the Governor of New South Wales annexed New Zealand by proclamation) or from 14 January 1840 (when Captain Hobson (of the Royal Navy) was sworn in as Lieutenant-Governor of New Zealand). The English Laws Act 1858 later confirmed that English law passed before 14 January 1840 was and was the law of New Zealand insofar as it was applicable to local circumstances. The (UK) Coinage Act 1816 therefore applied and British coins were confirmed as legal tender in New Zealand. (Exceptionally, the Reserve Bank (founded in 1934) was not allowed to issue legal tender coins until 1989. The coins were to be issued by the Minister of Finance.) Individual notes or coins may be demonetised and lose their role as legal tender (e.g. the pre-decimal farthing of the United Kingdom or the 1 pound note of the Bank of England), but the Bank of England reimburses all Bank of England banknotes by exchanging them for legal tender at its London counters (or by post), regardless of age. Banknotes issued by retail banks in the United Kingdom (Scotland and Northern Ireland) are not legal tender, but one of the criteria for legal protection under the Forgery and Counterfeiting Act is that the notes must be payable on demand, so that withdrawn notes remain the responsibility of the issuing bank without time limit. [ref. Some jurisdictions allow contract law to take precedence over legal tender, allowing merchants to indicate, for example, that they do not accept cash payments.
 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. Merchants can refuse large banknotes, which falls under the legal concept of invitation to treatment. [clarification needed] Legal tender is a form of money that courts must recognize as a satisfactory payment for monetary debts.  Each jurisdiction determines what is legal tender, but it is essentially anything that extinguishes the debt when it is offered (“offered”) to pay a debt.
The creditor is not obliged to accept the payment offered, but the act of offering payment in legal tender releases the debt. The purpose and function of legal tender is for the courts to determine whether it is a satisfactory payment for monetary debts. Each jurisdiction can set its specific limits on what legal tender is, but generally that`s all when it`s offered and accepted to pay down debt. Although the original creditor to whom the money is owed is not necessarily obliged to accept the payment offered, the specific act of offering payment discharges the debt. More recently, legal tender laws have created fiat money, that is, money that is not backed by gold or any other commodity. Instead, it is backed by the law of the land. Fiat currencies are more easily manipulated by governments to lower interest rates in order to fight unemployment. The popularity of cross-border and online shopping is increasing the demand for more forms of money, such as popular cryptocurrency alternatives such as Bitcoin, which are recognized as legal tender. However, given the official objections to such alternatives, except in a few minor cases, they may still be a few years away and are not legal tender in the United States or most other countries. There are many online services that accept cryptocurrencies, and this practice is completely legal. Due to their status as unofficial competitors with legal tender, cryptocurrencies are mainly limited to use in gray and black market activities or as speculative investments.
Banknotes and coins can no longer be legal tender if they are replaced by new banknotes of the same currency or if a new currency is introduced to replace the previous currency.  Examples: Before the Civil War (1861 to 1865), silver coins were legal tender only up to a maximum of US$5.