Redeemabi;ity of the $5.00 Maple Leaf

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Doesn't the American banknotes say 'Legal tender for all debts,public & private'? This means that a merchant should not refuse payment in U.S. currency if they are based in America,Ecuador,El Salvador,Panama or East Timor,or any of the Pacific
islands that use US$ as their currency.

 

If cold hard cash is the only way one can pay, then I don't think the merchant could turn them over for refusing a payment just because it isn't in the form they want. At least the buyer is making an effort and trying to pay. I'm not talkin' bout eBay, but rather an actual retail store.

David

 

They do have the right to refuse to accept cash, credit card, bank check or anything else. He can demand payment in horseshoes if he wants. You don't have any horseshoes then you go elsewhere. However I don't think the person would be in business very long.

catman

 

I don't see how any business could operate with not taking any cash whatsoever. They're not very business friendly and I for one would take my business elsewhere.

David

 

The real world practical problem for many businesses is the size of the note. If your teenage kid is working at a fast food joint, could you sleep knowing that they are keeping enough cash in the register (as opposed to the floor safe) to be able to make change for $100 bills?

 

I think that paper money is different from coins. Canadian bills state that the Bank of Canada "will pay to the bearer on demand". U.S. notes contain the phrase "This note is legal tender for all debts,public and private".These phrases would seem to imply an obligation to anyone to whom the note is profferred.

 

Well, I don't often do this on coin forums, but let's get technical with our legal terms.

A "debt" is an existing obligation to pay money. An ordinary cash sale transaction does not involve "debt". The exchange of the purchase price and the merchandise is simultaneous so neither the buyer nor the seller ever has an obligation to the other. Therefore, a seller can set whatever rules he wishes about what he will take in exchange for his goods.

Regarding "debt", the common-law rule followed in that part of the world which derives its legal system from England, is that a "tender" of payment stops the running of interest, whether or not it is accepted by the creditor; and once "tender" of payment has been made the creditor cannot take any action to collect the debt except to accept the "tender" (which, of course, must be kept available for delivery). In that context a "tender" is an offer of payment which the debtor is ready, willing and able to deliver. The presentation of U.S. currency to a creditor in the United States, is by statute a valid "tender".

Gadzooks - it's been about 40 years since I was teaching that stuff to law students taking a first year contracts course.

 

They last had that on the 1967 $1s, which wasn't payable in anything but regular circulation coins (Do they use old money where you live?) Current Canadian notes are simply "legal tender"