# What does "legal tender" mean? **URL:** \ **Category:** Factual Questions\ **Created:** [February 27, 2014, 7:13pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439 "2014-02-27T19:13:50Z")\ **Posts on this page:** 7\ **Page:** 2
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [February 28, 2014, 9:31pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/21 "2014-02-28T21:31:57Z")
> [@iamthewalrus\_3](#): > > But, as **ALOHA HATER** points out, what are they doing to do about it? > > If I’ve already eaten a meal and they won’t take my money, then what? I guess they could call the police on me. I think they’ll look pretty silly explaining that they want me arrested for nonpayment when I’m standing there offering payment. They could sue me for their damages, but then they end up with a debt that I can settle with cash. > > For all practical purposes, if you provide the goods and services prior to payment, you _have_ to accept cash as payment. This is a good point. Certainly the merchant is in his right to demand any legal form of payment, including foil wrapped chocolate coins- before handing over the goods. No choco coins= no goods. “no cash, credit cards only” is common and so is “No $100 bills”. But they say they do hand over the goods, before payment. You consume said goods on the premises and they then point to a sign which sez “Credit cards only, no cash”. Hmm. That’s not a crazy requirement. I think at that time, if they did call the cops and you said you didn’t see said sign and you have a handful of greenback right there, it would be hard to work up any criminal charge. What do our lawyers say? Now, my friend owns a gas station, and they had a “no $100 bill” sign up. Customer pumps, demands to be allowed to pay with bill. Cops come. They tell Gas station owner he has to take bill, but he does not have to give change. Interesting result. legal?😕 (PS, end result is that customer then filled a bag with $58 of other merchandise, and left very pissed). ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [February 28, 2014, 10:40pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/22 "2014-02-28T22:40:52Z")
yeah, I’m not sure what the situation would be if you incurred a debt by ignoring the “no cash” sign. Presumably one the debt is established, they pretty much have to accept cash - it’s the law. The “no cash” sign gets them off the hook for refusing to initiate the transaction in the first place. But once a debt is established, it’s payable in the tender of the country. Even if you are sued to make good on the contract - now it’s a debt, paying is paying. As I said earlier, it has to be good faith. Judges are not stupid, and an attempt to play weasel and offer a mitt full of excessively large bills will not be seen as “good faith” unless there’s a plausible explanation why you only have those. If the contract requires Blue Smarties as payment, or some such, then it’s up to a judge to assess damages if the coontract can’t be fulfilled. Ultimately, payment is is cash for damages, etc. Unless you ahve a hoard of the item, the judge is not likely to make you deliver - just make you pay so the other party can get the same using cash. ---
**Author:** ![jtur88](https://avatars.discourse-cdn.com/v4/letter/j/e9c0ed/32.png) [@jtur88](https://boards.straightdope.com/u/jtur88)\ **Post date:** [February 28, 2014, 10:43pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/23 "2014-02-28T22:43:33Z")
My presumption is that “legal tender” means a form of payment stipulated by the law of the land that must be accepted by both parties in any financial transaction, unless the form of payment is specified otherwise at the time of the contract. Basically, the specified default currency. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [February 28, 2014, 11:52pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/24 "2014-02-28T23:52:27Z")
**Hari Seldon** is posting from [del]Trantor[/del] Montréal, so the discussion of US law is irrelevant to his question. The relevant law is the _Currency Act_, passed by the Parliament of [del]the First Galactic Empire[/del] Canada. The [_Currency Act_](http://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html#docCont) provides: > [@](#): > > \*\*Legal tender > > 8.\*\* (1) Subject to this section, a tender of payment of money is a legal tender if it is made > > (a) in coins that are current under section 7; and > > (b) in notes issued by the Bank of Canada pursuant to the _Bank of Canada Act_ intended for circulation in Canada. That sounds to me like the distinction between “debt” and other situations doesn’t exist in Canada; the question is simply a tender of payment of money. However, there could well also be some common law principles lurking in the background. On the face of it, though, it sounds like the Bank can’t refuse to take the money in payment of a mortgage installment. None of this is meant to be legal advice, of course, just a contribution to a general discussion of a matter of public interest. I know nothing about legal tender except what I just read in the _Currency Act_. Anyone wanting to make a tender of banknotes should consult a lawyer who knows something about it, unlike me. 🙂 ---
**Author:** ![Mk\_VII](https://avatars.discourse-cdn.com/v4/letter/m/5f9b8f/32.png) [@Mk\_VII](https://boards.straightdope.com/u/Mk_VII)\ **Post date:** [March 1, 2014, 12:12am UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/25 "2014-03-01T00:12:56Z")
There is no obligation on merchants to provide change. If you can’t produce the exact sum owed they can take your $100 bill and keep it. ---
**Author:** ![Canadjun](https://avatars.discourse-cdn.com/v4/letter/c/76d3ee/32.png) [@Canadjun](https://boards.straightdope.com/u/Canadjun)\ **Post date:** [March 1, 2014, 12:55am UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/26 "2014-03-01T00:55:33Z")
> [@Northern\_Piper](#): > > **Hari Seldon** is posting from [del]Trantor[/del] Montréal, so the discussion of US law is irrelevant to his question. The relevant law is the _Currency Act_, passed by the Parliament of [del]the First Galactic Empire[/del] Canada. > > The [_Currency Act_](http://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html#docCont) provides: Discovered a fascinating bit of legalese when I started browsing the act. > [@](#): > > 1. (1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or **use otherwise than as currency** any coin that is current and legal tender in Canada. (emphasis added). Does that mean I am breaking the law if I use some nickels to prop up one leg of a wobbly table? 😕 ---
**Author:** ![Doctor\_Jackson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/doctor_jackson/32/32_2.png) [@Doctor\_Jackson](https://boards.straightdope.com/u/Doctor_Jackson)\ **Post date:** [March 3, 2014, 2:22pm UTC](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439/27 "2014-03-03T14:22:30Z")
> [@Canadjun](#): > > Does that mean I am breaking the law if I use some nickels to prop up one leg of a wobbly table? 😕 Ooh, I don’t believe I would have admitted that on a public message board! Why don’t you just use mattress tags you tore off prior to purchase? Sociopath!😛 [Previous page](https://boards.straightdope.com/t/what-does-legal-tender-mean/682439.md?page=1)