(a) A party is obliged to pay a certain sum of money, for example £100. Such an obligation remains a monetary obligation, although the parties may make more detailed arrangements for its performance (for example, by requiring payment in £20 notes or fixing payment by crediting a specific bank account);5 The Definition of Restitution Act refers to a monetary payment imposed as a penalty for recovering a loss. 3 min read Legal tender also enables monetary policy. From the issuer`s perspective, legal tender allows the issuer to manipulate, devalue and devalue the currency to obtain seigniorage and facilitates the issuance of escrow media by the banking system to meet trading needs. In the absence of legal tender laws, Gresham`s law would make monetary policy, seigniorage, currency manipulation, and fiat media spending much more difficult, as good money in this case tends to drive out bad money. MONEY PAID. If someone, with his consent or at his express request, advances money in favour of another, although he is not favored by the transaction, the creditor may recover the money in a lawsuit in which he declares the sums paid for the defendant. 5 p. & R.
9. But you cannot make yourself someone else`s creditor by voluntarily paying someone else`s debt. 1 const. R. 472; 1 Gill. and John. 497; 5 Cowen, p. 603; 10 John. 361; 14 John. 87; 2 roots, 84; 2 Ranging. 500; 4 N. H.
Rep. 138; 3 John. 434; 8 John. 436; 1 South. 150. 2. Let us assume that the money paid is not where property, not money, was paid for or received. 7 pp.
and R. 246; 8. Bibb, 378; 14 pp. and R. 179; 10 p. and R. 75; 7 J. J. Marsh. 18. But see 7 Cowen, 662. 3.
However, if a sum of money has been paid to the defendant for a just, legal or equitable claim, although it could not have been lawfully enforced, it cannot be recovered as money paid. See had and received money. 4. The form of the declaration refers to «sums paid by the plaintiff for the use of the defendant and at his request». 1 M. & W. 511. The difference between compensation and reimbursement lies in the method used to calculate the cash reward. Compensation, such as retroactive payment, refers to payment to the victim for the injustice committed. Compensation can be likened to a gift to the victim or his family to help or apologize. Reparation, on the other hand, restores the victim financially. In general, legal tender can take two basic forms.
A government can simply ratify a market-based commodity money like gold as legal tender and agree to accept the payment of taxes and execute contracts denominated in that commodity. Alternatively, a government may declare a counterfeit commodity or a worthless token as legal tender, which then adopts the characteristics of a fiat currency. It has already been observed1 that one of the most important functions of money is to serve as a general means of exchange or payment. Money, when it is legal tender, is used to fulfill many duties, whether imposed by force or voluntarily. In addition, in almost all claims (contract, tort, or otherwise), the defendant must ultimately fulfill its obligations by making a monetary payment.2 Payment can be made at any time during the due date, except in the case of commercial contracts, where payment must be made during normal business hours. In the absence of an agreement on the place of payment, it is the debtor`s duty to take reasonable steps to locate the creditor and pay the money owed. A debtor is not entitled to notice or a claim from a creditor without agreement. Legal tender serves several purposes.
By default, it is used by market participants to perform the functions of money in the economy: an indirect medium of exchange, a unit of account, a store of value, and a deferred payment standard. Proponents of legal tender laws argue that markets generally do not produce the optimal type, quality, and quantity of money, and that legal tender increases the usefulness of money as a means of reducing transaction costs. In particular, legal tender can allow flexibility in the money supply, and a single currency can eliminate the transaction costs associated with using multiple competing currencies. The introduction of legal tender is a means of achieving a single currency. Financial liabilities3 exist mainly when the debtor is obliged to pay a fixed, final or liquidated amount. This definition presupposes that money is payable in the sense of a medium of exchange or in a similar monetary context, for example when a bank grants a loan to its customer.4 Legal tender is anything that is recognized by law as a means of paying a public or private debt or fulfilling a financial obligation. including tax payments, contracts and statutory fines or damages. The national currency is legal tender in virtually all countries. A creditor is required by law to accept legal tender to repay a debt. Legal tender is determined by a law that determines the thing to be used as legal tender and the institution authorized to produce and deliver it to the public, such as the United States Department of the Treasury in the United States and the Royal Canadian Mint in Canada. Payment, the fulfillment of an obligation to pay money.
A person who is subject to such an obligation is called a debtor, and a person to whom the obligation is owed is called a creditor. The obligation can arise in different ways, but more often it is the result of a commercial transaction or contract between the parties. In order for the payment to extinguish the obligation, it is legally necessary that it be made at a reasonable time and place, in an appropriate manner and by and to an appropriate person. In the United States, the recognized legal tender consists of Federal Reserve notes and coins. Creditors are required to accept it as an offer of payment to settle a debt; However, unless prohibited by state law, private companies may refuse to accept some or all forms of cash offers unless a transaction has already taken place and the customer has not been at fault. Payment must be made in legal money, which is often referred to as legal tender. A debtor does not have the right to request a change. However, the parties may agree that payment will be made by other means, such as bill of exchange, promissory note, cheque (commonly referred to as negotiable instruments) or by electronic transfer. Where payment is made by means of a transferable security right, the general rule is that acceptance of such an instrument by the creditor is made only as a contingent payment. This means that if the instrument is not repaid later, the debt will be revived and the creditor can continue either on the instrument or on the original debt. However, the parties may agree that acceptance of a transferable security right will be made as absolute payment; In this case, if the instrument is not repaid, the creditor may bring an action against the instrument but not against the original debt. A payment can be made by simply transferring numbers to an account without the money changing hands.
If goods are accepted to satisfy a debt, this is considered payment. (b) a party is required to pay an indeterminate but identifiable sum of money, for example when a party agrees to pay an amount equal to the closing price of a listed security on a particular date. It is a monetary commitment, even if its amount is uncertain at the time the obligation arises, since the amount is determined at the time the obligation becomes due for performance; or (c) a party is liable to pay damages as a result of a breach of a non-contractual obligation in a contract or as a result of a breach of a non-monetary obligation.