Legal Tender


The term “legal tender” refers to the currency of a country that could be used legally to pay off debts and that cannot be deemed inadequate by a creditor to whom it is tendered in sufficient amount.

“Under these powers, Congress was authorized . . . to establish, regulate and control the national currency and to make that currency legal tender money for all purposes, including payment of domestic dollar obligations with options for payment in foreign currencies.”  Guaranty Trust Co. of New York v. Henwood, 307 U.S. 247 (1939)

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