A more thorough explanation:

Legal Tender refers to the coins and currency issued by the government that can be used to pay off debts. This includes U.S. cash dollars, Federal Reserve notes, and notes from Federal Reserve Banks and national banking associations. However, businesses are not required by law to accept cash as a form of payment for goods or services.

Legal Tender can only be used to pay off debts and is determined by each jurisdiction. For example, in the United States, personal checks, credit cards, and other non-cash payments are not considered legal tender. However, in some instances, foreign currency may be accepted as legal tender.

When a payment is tendered, it means that it is offered as a form of payment. The original creditor who is owed money is not obligated to accept the tendered payment, but the act of tendering the payment absolves the debt.

For example, if someone owes $100 to a creditor and offers to pay with legal tender, such as cash or a Federal Reserve note, the creditor may choose to accept or reject the payment. However, if the creditor accepts the payment, the debt is considered paid in full.