a) First of all, the role of money as a medium of exchange has already been emphasized. If a country`s trading system is to be based on money as a medium of exchange, then the law must support this position and allow for the secure settlement of monetary debts through payment by that means. Therefore, the law must require creditors to accept payments by this means – in other words, the creditor must accept payments as legal tender.33 Legal money is also known as “cash,” which means “in real form.” Over time, different definitions of money have evolved. Since the U.S. Constitution states that “no state may make anything but gold and silver coins a means of payment to pay the debt,” some believe that this is the definition of legal money and therefore any means of payment other than gold or silver is not considered legal tender. Indeed, the primary meaning of legitimate money is legal tender, but a broader interpretation is often applied in certain contexts. The Supreme Court of Canada has adopted an even broader definition in some respects, meaning that money is “any means which, in practice, fulfills the function of money that everyone agrees to pay a debt is money in the ordinary sense of the term, even if it is not legal tender.”37 This determines what legitimate money is. Ensure that it includes all forms of U.S. money, especially since the use of gold and silver is no longer a regular phenomenon. This includes financial assets that are not as liquid as coins and banknotes, but can easily be converted into money to settle debts. For example, domestic savings deposits, term deposits, bonds, etc.

They are as good as money, but non-legal means of payment. Fast money cannot be used directly for the purchase of goods and services. But it can be converted into cash in a short period of time. It refers to this form of legal tender, which can be paid up to a certain debt-releasing limit. Beyond this limit, a person may refuse to accept a payment and no legal action may be taken against them. In India, coins are limited legal tender. In this context, the verifiable demand deposit is not money, since a person can legally refuse to accept payments by cheque. The legal tender status that the government gives to money is of two types: limited legal tender and unlimited legal tender. On the basis of liquidity, money can be classified as follows: According to this definition, money refers to anything that fulfills the four basic functions of money: (a) medium of exchange; (b) measurement of value; (c) the deferred payment standard; (d) Store of Value. In Crowther`s words, “Money can be defined as anything that is generally acceptable as a medium of exchange and at the same time acts as a means of measurement and a store of value.

It must be recognized that the law of banknotes or paper money has developed somewhat differently, since their history is linked to that of bills of exchange and banks.57 Banknotes in the modern sense were not always distinguishable from other negotiable instruments, although it was decided in an early case that banknotes would generally be regarded as “money” in a legal context.58 Where the Bank of England in 1694.59 was not an issuing bank in the modern world. The law did not even include the question of whether the bank should issue banknotes, much less did it seek to give it an exclusive monopoly on banknotes that would have been compatible with the state theory of money.60 Nevertheless, immediately after its establishment, the bank began to function as an issuing and circulating bank. In addition, many regional banks continued to issue banknotes without state control. Since no legal definition of legitimate money has ever been provided, the term has led to a lot of confusion, especially in legal terms. For all intents and purposes, legal money should mean legal tender, but that`s not always the case. This caused a lot of confusion among law and banking students. Strangely, the dollar bills we carry in our wallets are not considered legitimate money. The note at the bottom of a U.S. dollar note reads “Legal tender for all debt, public and private” and is issued by the Federal Reserve, not the U.S. Treasury. a) The action for “money he had and receives” may be brought if it is not money itself, but a form of guarantee for it or another equivalent.11 It is money for which there is no limit to the amount of money offered in one payment at a time. For example, paper notes are unlimited legal tender in India, as all banknotes can be used to settle payments of unlimited value.

Let`s discuss the definitions of money under the following headings: (8) Limit. For the purposes of this section, the expression “money services business” does not include: A currency issued by an insurgent authority and forcibly imposed on the local population during a civil war must be considered a legitimate currency in the geographical area concerned, since the insurgents exercise de facto the highest authority in governmental matters, making obedience to their authority not only a necessity, but a positive duty. This view is supported by a number of decisions of the U.S. Supreme Court80 which have held, among other things, that a contract cannot be declared void or unenforceable on grounds of public policy simply because the consideration was expressed in Confederate dollars. In the current context, this approach has the advantage of conforming to the state theory of money as it has already been formulated. However, it is not entirely certain that English courts would take a similar approach; on occasion, they have refused to recognize legislative or official acts of an insurgent government.81 However, English courts have indicated that they are prepared to apply the laws of unrecognized governments, provided that they deal with private rights and that there are no conflicting considerations of public policy.82 It is proposed that, on this basis, The UK courts make such a monetary law under the appropriate legislation The United Kingdom does not formally recognise the state or government concerned. 2. Meaning of “money”. The term “money” generally includes bank notes1 and coins2, but may be limited to those that are legal tender at the relevant time and place.3 The term is sometimes used to include not only actual cash, but also a right to cash, such as amounts credited to a bank account4 or invested in securities5; And the term can, in some cases, be used in a popular sense to include all personal property or even, exceptionally, all real estate and personal property6.