Legal tender question

Economics Economics Questions
1

U.S. dollars are classified as “legal tender” in the U.S., meaning that if offered they must be accepted in payment of debts. My question is, in what quantity? Suppose I am selling something. To induce the other party to pay in, say, gold I could say, “The price in dollars is $10 trillion; the price in gold is a tenth of an ounce.” In effect, in spite of the federal government’s requirements, it seems like I could refuse to accept dollars by demanding an impossibly high price. (I’m not saying this is good business, of course–just speaking legally.) What am I missing here?

Thank you for your help,

Bradford Patterson

2

Well, the other party should have already agreed to purchase you good/service and only if they refuse to pay would the case be judged. Thus, he has already agreed with the price, no matter how high. In the practical world, the court would probably strike down the sale as “unfair” and force him to return the sold good.