Account of profits

Account of profits

An account of profits (sometimes referred to as an "accounting for profits" or simply an "accounting") is a type of equitable remedy most commonly used in cases of breach of fiduciary duty. [Black's Law Dictionary, 7th ed. 1999] It is an action taken against a defendant to recover the profits taken as a result of the breach of duty, in order to prevent unjust enrichment.

In conducting an account of profits, the plaintiff is treated as if they were conducting the business of the defendant, and made those profits which were attributable to the defendant's wrongful actions. This can be rather complex in practice, because the defendant's accounting records must be examined (sometimes by a forensic accountant) to determine what portion of his gross profits were derived to the wrongful act in question. [ [ Leigh Ellis, "Theory into Action: Calculating Damages Payments and Accounts of Profits in Patent Cases"] ]

Historically an account was not an equitable remedy, but was an action at common law, and is therefore technically an instrument of law, though it arose at a time before the distinction between law and equity was marked. [National Trust Co. v. H & R Block Canada Inc., 2003 SCC 66.]

Co-owners in concurrent estates also have the right to an accounting of profits, in order to properly apportion income from the use or leasing of the property.

ee also

*Tracing (law)
*Constructive trust


External links

* [ Leigh Ellis, "Theory into Action: Calculating Damages Payments and Accounts of Profits in Patent Cases"] Article discussing accounts of profits in the context of patent infringement under United Kingdom law. (mirror of referenced article)

Wikimedia Foundation. 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • account of profits — An account of profits may be sought by a plaintiff as an alternative to damages where his intellectual property rights have been prejudiced. This order requires the defendant to hand over the profits from his business due to the infringement of… …   Law dictionary

  • account of profits — A legal remedy available as an alternative to damages in certain circumstances, especially in breach of copyright cases. The person whose copyright has been breached sues the person who breached it for a sum of money equal to the gain made as a… …   Big dictionary of business and management

  • Account planning — is the discipline that brings the consumer into the process of developing advertising. To be truly effective, advertising must be both distinctive and relevant, and planning helps on both counts. Chris CowpeHistoryAccount planning is a job title… …   Wikipedia

  • profits — index earnings, income Burton s Legal Thesaurus. William C. Burton. 2006 profits …   Law dictionary

  • account — a record of a business transaction. When you buy something on credit, the company you are dealing with sets up an account . This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you …   Financial and business terms

  • Account Current — A summary of the performance of each individual insurance agent in the company. The account current is written and issued by the insurance company each year so the agents can see their total commissions earned, policy cancellations and premiums… …   Investment dictionary

  • undivided profits — noun plural : earnings of a business enterprise which have been retained instead of being distributed to stockholders or owners; especially : a net worth account often appearing in bank statements and showing accumulated profits which have not… …   Useful english dictionary

  • undivided profits — Profits of a corporation which have neither been distributed as dividends nor carried to surplus account. Edwards v Douglas, 269 US 204, 70 L Ed 235, 46 S Ct 85. Surplus and undivided profits are the property of the corporation. As their names… …   Ballentine's law dictionary

  • Unit of account — A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. It is one of three well known functions of money. It lends meaning to profits, losses, liability, or assets. The accounting monetary unit of …   Wikipedia

  • Merchant account — A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”