legal tender
C1Formal, Financial, Legal
Definition
Meaning
Currency that must, by law, be accepted if offered in payment of a debt.
The official form of payment recognized by a government as valid for settling financial obligations; can also be used metaphorically to describe anything that is officially sanctioned or accepted.
Linguistics
Semantic Notes
The term specifies a legal status and is not just a synonym for 'money'; its acceptance is a matter of law, not choice.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning or usage between UK and US contexts.
Connotations
Equally formal and technical in both varieties.
Frequency
Slightly more frequent in UK media due to discussions around Bank of England notes and Scottish/Northern Irish banknotes.
Vocabulary
Collocations
Grammar
Valency Patterns
X is legal tenderX ceases to be legal tenderto designate X as legal tenderVocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “[No common idioms specifically for 'legal tender']”
Usage
Context Usage
Business
Used in contracts and financial regulations to specify acceptable payment methods.
Academic
Appears in economics and law papers discussing monetary policy and sovereignty.
Everyday
Rare in casual conversation; might appear in news about coin/note withdrawal.
Technical
Central to banking, central banking, and legal texts on financial obligations.
Examples
By Part of Speech
verb
British English
- The old £1 note ceased to be legal tender in 1988.
American English
- The Treasury Secretary can designate certain coins as legal tender.
adverb
British English
- [Not typically used as an adverb]
American English
- [Not typically used as an adverb]
adjective
British English
- The legal tender status of Scottish banknotes is often debated.
American English
- They issued a legal tender proclamation for the new series of notes.
Examples
By CEFR Level
- In the UK, coins and notes are legal tender.
- Shopkeepers must accept legal tender, like pound coins, for payment.
- The government's decision to demonetise certain denominations removed their status as legal tender, causing significant economic disruption.
Learning
Memory Aids
Mnemonic
Think: 'LEGAL' means by law, 'TENDER' means to offer payment. So, it's payment the law says you must accept.
Conceptual Metaphor
MONEY IS A LEGAL INSTRUMENT (it derives its power and necessity from law).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid direct calque 'законный тендер' – 'тендер' means 'bid' or 'tender offer' in business. Correct translation is 'законное платёжное средство'.
Common Mistakes
- Using it as a countable noun (e.g., 'legal tenders'). It is generally non-countable.
- Confusing it with 'currency' – all legal tender is currency, but not all currency is necessarily legal tender in all contexts (e.g., $1 coins are, but a private cheque is not).
Practice
Quiz
What does 'legal tender' primarily refer to?
FAQ
Frequently Asked Questions
Yes, for sales (e.g., before a debt is incurred). Legal tender rules apply primarily to the settlement of existing debts. A shop can set its own payment terms (e.g., 'card only').
No. Legal tender refers specifically to state-issued coin and banknotes. Credit cards, cheques, and digital payments are forms of payment but are not 'legal tender'.
It loses its mandatory acceptance power. Old notes/coins must usually be exchanged at a central bank within a set period.
Sometimes. For example, in the UK, 1p and 2p coins are legal tender only for payments up to 20p. Large payments in small denomination coins can be refused.