Yippe-Ki-Ya
New Member
Big A.D. said:
That's right, but in person there's no uncertainly about whether they received it or not.
Just simplifying the issue to force them actually refusing the legal tender. if they do - it's party time! :lol:
A question about the legal tender
- Thread starter jrbrans
- Start date
That's right, but in person there's no uncertainly about whether they received it or not.
Just simplifying the issue to force them actually refusing the legal tender. if they do - it's party time! :lol:
Section 9 of the Currency Act 1965 says otherwise, but IANAL and don't have any interest in the private transaction of others.Big A.D. said:
My understanding of the term legal tender means an artifical cap on the amount one can 'tender' payment using a particular denomination of coin. See Section 16 of the Currency Act 1965 for more info. Legal tender does not mean currency, it does not mean money, and it does not mean cash. If two parties wish to ignore Section 16 then they are free to do so as there is no penalty as such.
All silver and gold coins have a legal tender based on their face value but will (generally) trade for a much higher amount... Gresham's Law at work. The only coins I am aware of that have been demonetised are the dump and holey dollar. These coins can fetch a pretty penny at auctions.
Au.Ag.Mzch
New Member
Big A.D. said:
In a nutshell...
1) Intention to be legally bound (to create legal relationship)
Both sides must have an intention to enter into legal obligations.
2) Consideration
A person/s has to agree to give something that is real and of worth, in exchange for whatever it is that they want from the other party. It doesn't actually have to be of an equivalent/equal value (eg. I could offer you $1 for your house, which if you accepted it then Consideration would have been fulfilled).
3) Agreement between the parties (offer and acceptance)
Both parties need to agree to what is being offered and accepted, ie. a consensus is reached.
4) Genuine consent
If illegitimate pressure is used to get consent in order for the contract to be created, then the courts can void the contract. Usually occurs via two methods:
a) Duress when one party uses (or threatens to use) unlawful force or harm in order to make the other party agree to the contract. Can include physical harm, economic harm, and illegal activity. Also can be aimed either at one party directly, or at their family members/friends/workplace etc.
b) Undue influence if one party has dominance over the other party (in terms of trust and confidence), they may use their position to influence the decisions of the weaker party to consent to the contract going ahead.
5) Legality of objects
The subject matter needs to not be illegal. Eg. paying a hitman to take out someone, who then pikes out but keeps your money = not a legal contract since the subject is murder which obviously is illegal.
6) Capacity to contract
The parties have to have the capacity to enter into legally-binding agreements (and therefore be subject to obligations enforceable by law). People who are not capable of entering into a contract include:
- persons under the age of 18
- persons who are in an altered state of consciousness due to intoxication, medication/drugs (both legal and illegal)
- persons whose intellectual or mental capacity is diminished due to intellectual injury or mental illness.
- etc.
i believe the reason why bullion coins are stamped legal tender, is that they are then owned by the reserve bank just like our paper dollars are.
so if/when they are recalled you will only be paid the legal tender amount...I have only a small part of my stack in coins.
so if/when they are recalled you will only be paid the legal tender amount...I have only a small part of my stack in coins.
chimpanchu
New Member
Earthjade said:
Wait the minute... then why the heck PerthMint been selling us silver coin for $45+ all these time?
Is that mean PerthMint (being a government owned corporation) been breaking "Legal Tender" law??? Can we sue them?
TheBullionBoss
Member
^^ I don't know if your being serious or not
chimpanchu said:
Legal tender value is not the same as market value.
The Perth Mint sells coins at market value. It would be perfectly legal to trade coins at their legal tender value, however you have to find someone willing to supply you bullion coins and accept their legal tender value in return (good luck!)
chimpanchu
New Member
Big A.D. said:
Remember those 1960 round 50 cents coins? They were pulled out of circulation because the metal value exceeded the coin's face value.
Why didn't Oz govt sell those coins at market value like they did with kooks and koalas?
Au.Ag.Mzch
New Member
chimpanchu said:
Because they were stupid
and probably didn't think that ppl would pay above the coin's face value - or maybe it was just too hard to get them from govt --> dealers --> public
chimpanchu said:
1966 50c coins were (and still are) circulating legal tender.
Kooks, Koalas and everything else the Perth Mint makes is classified as Non-Circulating Legal Tender.
As far as I know, there is no legal mechanism for reclassifying circulating legal tender as non-circulating legal tender and I imagine it hasn't ever come up because doing that would create way too much confusion for the public.