Does legal tender ensure the acceptability of money?

Answer 1

"Can Legal Tender be refused as payment to settle a debt?", the short answer is no, but there are a lot of "buts" and "what ifs" with Legal Tender and it varies from country to country.

As far as Great Britain is concerned, any demonetised coin or banknote such as the One Pound note or the Half New Penny, etc. are no longer Legal Tender.

1 and 2 Penny coins are Legal Tender in amounts up to 20 Pence.

5 and 10 Pence coins are Legal Tender in amounts up to Five Pounds.

20 and 50 Pence coins are Legal Tender in amounts up to Ten Pounds.

One, Two and Five Pound coins are Legal Tender up to any amount, as are banknotes.

The currencies of Scotland and Northern Ireland are not Legal Tender in England and Wales (and vice-versa), but are accepted on the basis of them being a Promissory Note by mutual agreement between the banks concerned.

A shopkeeper is entitled to refuse payment if the coins or banknotes are mangled, mutilated or torn or, he cannot make change for a small purchase from a large banknote.

An unacceptable coin is one where the main design features cannot be seen clearly for any reason. An unacceptable banknote is one that may have been torn in half or been washed and the colours and design are no longer visible or the paper is pulped.