Any means of payment which has state's sanction behind it and a debtor can legally compel his creditor to accept in settlement of dues is called legal tender money. Legal tender money is two kinds.Unlimited legal tender:Unlimited tender money is one in terms of which debt can be legally paid up to any amount. In Pakistan, for instance notes of state bank of Pakistan valuing Rs. 100.00, Rs. 5.00 and Rs. 1.00 are full legal tender money.
Limited legal money:Limited legal tender money is that which a creditor can accept in settlement of claims up to certain limit only. In Pakistan coins of small denomination valuing upon paisa 50 are limited legal tender money. The creditor can refuse to accept the payment of obligations legally if the coins are of paisa fifty or less than fifty.
For the good coinage, the guiding principles are:The size of the coins should be convenient to handle.They should be designed in such a way that the tempering with the coins should be impossible.The official stamp impressed on the coins should be impressive.They should be coined and designed in a manner that its weight and finesse remains unaltered through circulation. It is not yet discovered as to when the coins were fashioned first. Recently in India coins have been discovered which are estimated to be over 5.000 years old.
Limited legal money:Limited legal tender money is that which a creditor can accept in settlement of claims up to certain limit only. In Pakistan coins of small denomination valuing upon paisa 50 are limited legal tender money. The creditor can refuse to accept the payment of obligations legally if the coins are of paisa fifty or less than fifty.
For the good coinage, the guiding principles are:The size of the coins should be convenient to handle.They should be designed in such a way that the tempering with the coins should be impossible.The official stamp impressed on the coins should be impressive.They should be coined and designed in a manner that its weight and finesse remains unaltered through circulation. It is not yet discovered as to when the coins were fashioned first. Recently in India coins have been discovered which are estimated to be over 5.000 years old.
