legal-tender
Paying debts in cash in a petty way
<p>I owe a £5,000 debt and I wished to make payment in the pettiest but legal way possible.</p>

<p>I would like to pay entirely in cash, I'm aware there is a previous case history in doing such a thing and I am aware there are <a href="https://www.royalmint.com/help/trm-faqs/legal-tender-amounts/" rel="nofollow noreferrer">rules regulating how many coins to value are legal tender</a>.</p>

<p>I have prepared sorted piles of coins based on my basic understanding of what is legal tender:</p>

<ul>
<li>20 * 1p = 20p</li>
<li>10 * 2p = 20p</li>
<li>92 * 5p = £4.60</li>
<li>50 * 10p = £5</li>
<li>50 * 20p = £10</li>
<li>20 * 50p = £10</li>
<li>4970 * £1 = £4970</li>
</ul>

<p>I believe at this point this would be an acceptable form of payment.</p>

<p>I mix all these coins into one massive sack. </p>

<p>I then fill the sack with an assortment of confetti.</p>

<p>Just as I prepare to take the sack to make payment, my child who I have been teaching the value of money tips in a till full of fake coins. I don't have time so I delivery the sack as payment as is.</p>

<p>Have I paid in a way in which the creditor cannot refuse payment? 
At what point are they justified in their refusal? 
Am I responsible for the sorting of coins?
Am I liable for the cost of time involved in sorting?</p>

<p>Although I am looking for an answer in a British context I'm happy to hear how this may differ in other countries.</p>

<p>Clarification: This question is entirely hypothetical. </p>

<p>In English law, &quot;legal tender&quot; is effective in only one situation: the defence of &quot;tender before claim&quot;.</p>
<p>In practice, in order to maintain such a defence, you must pay the money into court with a copy of the claim form and defence. See <a href="https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part37#IDAALICC" rel="nofollow noreferrer">CPR37.2</a> and <a href="https://www.legislation.gov.uk/uksi/2011/1734/article/6/made" rel="nofollow noreferrer">section 6 of the Courts Funds Rules 2011</a>.</p>
<p>Unfortunately for you, the Court Funds Office <a href="https://www.gov.uk/pay-court-funds-office" rel="nofollow noreferrer">expects to be paid by cheque</a>, though the rules say that ordinarily a cheque or banker's draft is acceptable. See <a href="https://www.legislation.gov.uk/uksi/2011/1734/article/7/made" rel="nofollow noreferrer">section 7</a> of the court funds rules. To pay in cash, you the Accountant General would have to direct otherwise.</p>
<p>There might be some exceptionally unlikely situation in which a court might accept a very awkward set of coins, but so unlikely is it as to be discounted.</p>
<p>The upshot of all this is that, although in theory one can offer to pay in legal tender as a defence to a claim in debt, in practice the rules for legal tender are irrelevant - the rules of the Court Funds Office are what prevail.</p>

<h2>Your payment can be refused in <a href="/questions/tagged/germany" class="post-tag" title="show questions tagged &#39;germany&#39;" aria-label="show questions tagged &#39;germany&#39;" rel="tag" aria-labelledby="germany-container">germany</a></h2>
<p>Nobody is obligated to take more than 50 coins in legal tender under MünzG §3, as I already elaborated <a href="https://law.stackexchange.com/a/82598/10334">here</a>. The only custom that gets social pressure to accept such a payment is bridal shoes, which customarily are to be paid in small change as that is considered to bring good luck. Otherwise, nothing <em>forces</em> them to accept a pile of loose change.</p>
<p>Only the Bundesbank is required to accept any amount of coins, for the purpose to change them for others or bills of higher denomination.</p>
<h2>Your split is not legal in <a href="/questions/tagged/england-and-wales" class="post-tag" title="show questions tagged &#39;england-and-wales&#39;" aria-label="show questions tagged &#39;england-and-wales&#39;" rel="tag" aria-labelledby="england-and-wales-container">england-and-wales</a></h2>
<p>Your payment is to be £5000. <a href="https://www.royalmint.com/help/trm-faqs/legal-tender-amounts/" rel="nofollow noreferrer">That is more than £10.</a> As such, any denomination smaller than £1 is not legal tender for that transaction. You have to pay with 5000 £1 coins to be on the legal side and have the most coins possible.</p>
<h2>Padding the bags... in general</h2>
<p>Adding confetti to &quot;pad the bags&quot; might be seen as an attempt to cover up missing coins. The presence of fake coins definitely crosses the bridge to fraud - the mere giving them away knowing they are fake is fraud.</p>
