•
LAW OF FINANCIAL INSTITUTIONS AND SECURITIES
BLO3405
• Payment systems
• Definitions
• ‘Payment’ - the tender and acceptance of some act which discharges a monetary obligation
• ‘Money’ – the quality of money is to attributed to all chattels which, issued by the authority
of the law, and denominated with reference to a unit of account, are meant to serve as
universal means of exchange in the State of issue.
• Payment systems
• Payment contract
• Where the contract is silent on the payment method, it is presumed any legal tender will be
valid (this could be displaced by presence of an EFTPOS machine)
• Payment may be conditional - for example, payment by cheque is conditional upon the
cheque being honoured
• Most non cash payments are conditional payments
• Payment systems
• Tender and acceptance
• Tender is an offer by the debtor to perform some act that will discharge the payment
obligation
• A valid tender has legal consequences even if not accepted, that is, the law holds the
payment obligation has been discharged
• The reason given for the refusal of tender may have serious legal consequences:
E.g. Paynter v Willems (1983) (p284)
• ‘Legal tender’ is defined in the Currency Act 1965 (Cth) (p285)
• In commercial contracts, the court will often find an intention that payment be made by
means other than legal tender:
• E.g. Tenax Steamship v Brimnes (1975) (p286)
• Payment systems
• Common payment methods
• Cash
• Direct credits or debits
• Bpay
• EFTPOS
LAW OF FINANCIAL INSTITUTIONS AND SECURITIES
BLO3405
• Payment systems
• Definitions
• ‘Payment’ - the tender and acceptance of some act which discharges a monetary obligation
• ‘Money’ – the quality of money is to attributed to all chattels which, issued by the authority
of the law, and denominated with reference to a unit of account, are meant to serve as
universal means of exchange in the State of issue.
• Payment systems
• Payment contract
• Where the contract is silent on the payment method, it is presumed any legal tender will be
valid (this could be displaced by presence of an EFTPOS machine)
• Payment may be conditional - for example, payment by cheque is conditional upon the
cheque being honoured
• Most non cash payments are conditional payments
• Payment systems
• Tender and acceptance
• Tender is an offer by the debtor to perform some act that will discharge the payment
obligation
• A valid tender has legal consequences even if not accepted, that is, the law holds the
payment obligation has been discharged
• The reason given for the refusal of tender may have serious legal consequences:
E.g. Paynter v Willems (1983) (p284)
• ‘Legal tender’ is defined in the Currency Act 1965 (Cth) (p285)
• In commercial contracts, the court will often find an intention that payment be made by
means other than legal tender:
• E.g. Tenax Steamship v Brimnes (1975) (p286)
• Payment systems
• Common payment methods
• Cash
• Direct credits or debits
• Bpay
• EFTPOS
