Template:Simplecontract

“Simple contract” is not defined, but the context of a Limitation Act puts it in contrast to:

• Insurance contracts: payment claims under insurance contracts — perhaps not simple because of the duty of utmost good faith implied in them — who knows? —
• Contract of loans: any “contract of loan” which:

(a) does not provide for repayment of the debt on or before a fixed or determinable date; and

(b) does not effectively (whether or not it purports to do so) make the obligation to repay the debt conditional on a demand for repayment made by or on behalf of the creditor or on any other matter;

except where in connection with taking the loan the debtor enters into any collateral obligation to pay the amount of the debt or any part of it (as, for example, by delivering a promissory note as security for the debt) on terms which would exclude the application of this section to the contract of loan if they applied directly to repayment of the debt.

Now for a short piece of text this is bloody hard to decipher. First. let's cut out the flannel:

(a) has no determinable repayment date for the debt; and

(b) does not make the repayment obligation conditional on demand by the creditor or on any other matter;

except where the debtor has created a collateral obligation to pay the debt (for example, by delivering a promissory note as security for the debt) on terms which would exclude the application of this section to the contract of loan if they applied directly to repayment of the debt.