MONEY IN CANADIAN LAW

Abstract

In this article, the author critically examines the concept of money in Canadian law in the context of the Canadian payments system. Money, currency and legal tender are defined, distinguished and illustrated by reference to statutory provisions and Canadian and English case law. The Canadian payments system is described and Canadian judicial decisions touching upon the question of what constitutes money are evaluated in terms of their capacity to provide a comprehensive legal theory of money. Legal tender and payment are described and contrasted as incidents of contract law. Foreign currency payment obligations are discussed and analyzed in light of the current statutory framework and recent English judicial decisions in order to expose the inadequacy of existing law in light of the monetary character of such obligations. Various strategies which might be pursued with regard to the enforcement of foreign currency obligations are discussed and the current legislative framework is criticized. The author concludes that the legal concept of money ought to be enlarged to embrace rapidly advancing technological developments in the area of payments, failing which the law may become out of date and irrelevant.