Definition

1. Noun:
   • Official medium of payment: Something that, by law, must be accepted as payment for a debt or for goods and services within a country's jurisdiction. It is the officially recognized currency.

Usage

• Noun:
  • The law states that banknotes issued by the central bank are legal tender and must be accepted for all debts.
  • Coins of small denominations are often legal tender only up to a certain amount for a single transaction.

Examples

• Noun:
  • The court ruled that the debt must be repaid in the nation's legal tender.
  • Although checks are common, only cash is considered legal tender in this context.

Advanced Usage

• "to be legal tender for": to be the official currency acceptable for a specific purpose or up to a limit.
  • The one-dollar coin is legal tender for any amount, but the five-cent coin is only legal tender for payments up to five dollars.

Variants and Related Words

• Tender (noun, in this context): An offer of money as payment. (Note: This is a distinct meaning from the more common verb "to tender" meaning to offer formally).
  • The creditor refused the tender of foreign currency.

Synonyms

• Lawful money: Money that is recognized by law as valid for meeting financial obligations.
• Fiat money: Currency that a government has declared to be legal tender, but is not backed by a physical commodity.

Related Phrases

• "to have the status of legal tender": to possess the legal quality of being an official medium of payment.
  • The new digital currency will have the status of legal tender once the bill passes.

Notes on Meaning

• The term specifically refers to the medium of payment itself (e.g., specific coins and banknotes), not to the broader concept of money or currency in general. Its defining characteristic is its mandatory acceptance for the settlement of debts. Private businesses may set conditions for other forms of payment (like credit cards), but they generally cannot refuse legal tender for the settlement of a debt already incurred.

Noun

1. something that can be used as an official medium of payment