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TeachMeFinance.com - explain Lawful money historic definition... Lawful money -- The term lawful money is understood to .apply to every form of money endowed by law with legal tender quality ; see Legal tender. Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.