Q&As

If an agreement for a loan between two individuals does not contain any provision as to repayment, is the loan repayable on demand? If so, what is the authority for this?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk

Published on: 24 July 2024

The Limitation Act 1980 (LA 1980) bars a party from pursuing a remedy after the expiration of a certain period of time, the public policy behind this being finality and certainty that claims will not be brought after a certain period of time.

LA 1980, s 5 provides that 'an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued'. An action for the recovery of a debt is an action founded on simple contract.

At common law, where no time for repayment is specified in a contract of loan, or where the loan was expressed simply to be repayable 'on demand', the lender’s cause of action in general accrued when the loan was made and time began to run from that moment. See case law: Garden v Bruce;

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Chris Bryden

Barrister, 4 King’s Bench Walk

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).