Simple contract Sentence Examples

Putting aside those created by statute, recoverable by civil process, debts may be divided into three classes, (I) judgment debts, (2) specialty debts, and (3) simple contract debts.

Until 1869 specialty debts had preference under English law over simple contract debts in the event of the bankruptcy or death of the debtor, but this was abolished by the Administration of Estates Act of that year.

The main difference now is that a specialty debt may, in general, be created without consideration, as for example by a bond (a gratuitous promise under seal), and that a right of action arising out of a specialty debt is not barred if exercised any time within twenty years, whereas a right of action arising out of a simple contract debt is barred unless exercised within six years.