Limitation Legislation and Loans Repayable on Demand

An old common law rule that a loan made without any fixed date of repayment is payable immediately has led to injustice in a number of cases. In the limitations context the cause of action is taken to have accrued when the loan was made and thus the limitation period can expire long before a lender decides to request repayment of the loan many years later. This paper explores the historical development of the rule and the reform of the rule in other jurisdictions. The author argues that the rule needs to be reformed in Australia.