Legal tender has an even narrower definition in some countries. For instance, in the UK, legal tender is the currency that has to be accepted by a court of law when a debt is to be paid to them. In all other cases, for instance if there is a debt to a private individual or a company, then the law has nothing to say. Mostly we get by on the "Oh, don't be ridiculous" principle.

That's actually very important and why it exists: It ensures a way to settle debts. "Oh don't be ridiculous" has very little weight in money and debts disputes.

In the case you mention this is called "defence of tender before claim". It means the person offered to the money but that was refused, so they go and pay it into court to protect themselves. In effect it means that if someone offers to settle in legal tender and is refused, then follow that legal procedure, then the creditor cannot do anything anymore expect recovering the money from the court.

I've heard that at one time, a merchant in (say) England might refuse a pound note from (say) Scotland, as they are technically separate countries.

Is that still the case?

It actually happened to me once, when I was in London dining in a restaurant. I wanted to pay in cash that I withdrew in Scotland and the lady did decline the money I gave her. Pretty wild for me as a German doing a little trip through the UK.

> I wanted to pay in cash... me as a German

Very German thing to do, yet in the UK I have not had a need to pay in cash, just use your card (or phone/watch if you are into that). Dunno if it was the money type, or just not want to be dealing with cash per se.

No, that'd never happen, but only because there's no such thing as a single pound note any more.

A wonder if a pound note actually meant a single pound (or just pound type, e.g. £5). It's a genuine question how it would be perceived in the UK, esp. when spoken by non Brit/Irish person.