Option 2: The money which a creditor is under compulsion to accept in settlement of his claims, correctly describes the meaning of legal tender money.
Legal tender money refers to the form of payment that a debtor can use to discharge their debt to a creditor. This money is legally recognized by the government and must be accepted by the creditor in settlement of a debt. In other words, legal tender is the money that creditors are required by law to accept as payment for a debt.
Legal tender laws vary from country to country. For example, in the United States, according to the Coinage Act of 1965, all U.S. coins and currency are legal tender for all debts, public charges, taxes, and dues. However, private businesses are free to set their own policies on which forms of payment they will accept.
Option 1 is incorrect because the fee for legal cases is usually paid in cash or other acceptable forms of payment, but it is not necessarily limited to legal tender money.
Option 3 is incorrect because bank money, such as cheques, drafts, bills of exchange, etc., is not legal tender. While these forms of payment may be widely accepted, they are not required by law to be accepted as payment for a debt.
Option 4 is incorrect because metallic money in circulation, such as coins and banknotes, is only part of legal tender money. Other forms of payment, such as digital money, may also be considered legal tender.
In summary, legal tender money is the money that a creditor is required by law to accept as payment for a debt.