Legal Definitions - current money

Current money refers to the official currency or legal tender that is in circulation and accepted as a medium of exchange within a specific jurisdiction at a particular time. It includes banknotes and coins issued by a government or central bank, which are legally recognized for the payment of debts and transactions.

Here are some examples illustrating the concept of current money:

• Example 1: Retail Purchase

  A customer in London purchases a new book from a bookstore and pays with a £20 note. This £20 note is considered current money in the United Kingdom because it is legal tender issued by the Bank of England and is universally accepted for transactions within the country.

• Example 2: International Debt Repayment

  A company based in Mexico owes a supplier in the United States $10,000. The contract specifies that the payment must be made in U.S. Dollars. When the Mexican company transfers the $10,000, these U.S. Dollars represent the current money agreed upon for the transaction, as they are the legal tender in the United States and the specified currency for the debt repayment.

• Example 3: Court Judgment

  A court in Australia rules in favor of a plaintiff and orders the defendant to pay AUD 15,000 in damages. The Australian Dollars (AUD) constitute current money within Australia. The court specifies this currency because it is the official legal tender in that jurisdiction, ensuring the payment is made in a form that is officially recognized and usable there.