In this video, we delve into the meaning of the phrase “legal tender”, as this phrase is commonly misunderstood or not fully known. We aim to provide the details for you to fully grasp what “legal tender” means, and we also throw in some information that is sure to blow your mind! 📖 In this video we cover:
- What “payment” means.
- What “value” means.
- The historical link between gold coins and paper money.
- The impact of the abandonment of the gold standard in the UK in 1931.
- What “legal tender” means as stated by the Bank of England.
- How this information links to the money-making process banks engage in when making loans.
- How your loan agreement is treated as a promissory note/cash for accounting purposes.
- The definition of “deposit” in law.
- Case law that shows that the legal relation between a bank and its customer is that of a debt-creditor relationship.