Legal tender is a form of money that a country's courts are required to recognize as satisfactory payment for any monetary debt. When legal tender is offered to settle a debt, it legally discharges that debt, meaning the debtor cannot be sued for non-payment if they pay the exact amount in legal tender

. Key points about legal tender include:

• It is the official money recognized by law within a jurisdiction for settling debts and financial obligations, including taxes and fines

• Legal tender typically includes coins and banknotes issued by the government or authorized institutions like central banks or mints

• Creditors must accept legal tender to settle debts, but outside of debt repayment, businesses or individuals may refuse to accept legal tender as payment for goods or services if no debt has been incurred

• Non-cash payment methods such as checks, credit cards, or cryptocurrencies generally are not legal tender

• The exact amount of legal tender must be tendered to fully discharge a debt; no change can be demanded

• Legal tender laws vary by country; for example, in the UK, certain coins have limits on the amounts considered legal tender, and banknotes are legal tender only in England and Wales

• The term "legal tender" comes from the idea of "offering" payment and is primarily a legal concept related to debt settlement, not necessarily to everyday transactions

In summary, legal tender is the officially recognized money that must be accepted by creditors to settle debts, but it does not compel businesses to accept it for all transactions