A more thorough explanation:

A simulated contract is a type of contract that appears to be valid and enforceable, but in reality, it is not. It is a contract that is created to deceive or mislead others, and it has no legal effect.

For example, if two parties create a contract that is meant to deceive a third party, it is a simulated contract. The contract may look legitimate, but it is not legally binding.

Another example of a simulated contract is when a person signs a contract under duress or coercion. In this case, the contract is not valid because the person did not enter into the agreement willingly.

Simulated contracts are illegal and can result in legal consequences for those involved. It is important to ensure that any contract you enter into is legitimate and legally binding.