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Can they refuse cash?

My partner booked a holiday last year for the end of this September thinking it would be OK, but now we are second guessing it! We have the test of our deposit of £600 due the end of this week and tui have said they won't accept cash. I'm looking for a loop hole out and am I right in thinking this is classed as a debt and they cannot refuse legal tender to settle the debt? In which case we could say we want to cancel on that basis or am I clutching at straws? 

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