Account stated

Account stated

Under United States law, account stated is a statement between a creditor (the person to whom money is owed) and a debtor (the person who owes) that a particular amount is owed to the creditor as of a certain date. Often the account stated is a bill, invoice or a summary of invoices, signed by the customer or sent to the customer who pays part or all of it without protest. [ [http://www.thelawencyclopedia.com www.thelawencyclopedia.com] ] An account stated may also be established when the debtor retains the statement of account (for example the bill or invoice) without objecting, for an unreasonable length of time. "Unreasonable" is determined by looking at the surrounding circumstances. 1 Am. Jur. 2d Accounts & Accounting section 26 (West 2007).The elements of account stated are: (1) prior transactions between the parties which establish a debtor-creditor relationship; (2)an express or implied agreement between the parties as to the amount due; and (3) an express or implied promise from the debtor to pay the amount due. 1 Am. Jur. 2d Accounts & Accounting section 26 (West 2007).When a creditor sues for account stated, this sets both the debtor's liability and the exact amount the debtor must pay, which is less complicated than claiming a debt is due and payable. An account stated may carry a longer statute of limitations (time to file suit) than some other forms of debt, depending on the state. Defenses such as fraud or mistake may still be asserted.

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Look at other dictionaries:

  • account stated — account stat·ed / stā təd/ n pl accounts stated: an account presented by a creditor to his or her debtor which by implied or express acceptance has been agreed upon by both parties as correct Merriam Webster’s Dictionary of Law. Merriam Webster.… …   Law dictionary

  • account stated — noun (plural accounts stated) : an account rendered which by implied or express acceptance has been agreed upon by both parties as correct …   Useful english dictionary

  • account stated —    A statement between a creditor and a debtor that a stated amount is owed as of a stated date. The statement may be a bill, invoice or summary of invoices that the debtor may agree to pay either in whole or in part …   Business law dictionary

  • account stated — All agreement concerning prior transactions between the parties with respect to the correctness of the separate items composing the account and the balance, if any, in favor of one or the other of the parties. 1 Am J2d Acctg § 21. An agreement… …   Ballentine's law dictionary

  • account stated — An agreed balance between parties to a settlement. Eng v. Stein, 123 Ariz. 343, 599 P.2d 796, 800 …   Black's law dictionary

  • account stated — An agreed balance between parties to a settlement. Eng v. Stein, 123 Ariz. 343, 599 P.2d 796, 800 …   Black's law dictionary

  • account — I (evaluation) noun appraisal, assessment, com pre rendu, enumeration, financial statement, ledger, list of receipts and payments, ratio, register, statement, statement of debits and credits, statement of pecuniary transactions, tally, valuation… …   Law dictionary

  • account — A detailed statement of the mutual demands in the nature of debit and credit between parties, arising out of contracts or some fiduciary relation. A statement in writing, of debits and credits, or of receipts and payments; a list of items of… …   Black's law dictionary

  • account — A detailed statement of the mutual demands in the nature of debit and credit between parties, arising out of contracts or some fiduciary relation. A statement in writing, of debits and credits, or of receipts and payments; a list of items of… …   Black's law dictionary

  • account — Synonyms and related words: a reckoning of, account current, account for, account of, account rendered, account stated, accounting, accounts, acquaintance, acta, adjudge, adjudicate, advantage, aggregate, allow, allow for, allowance, amount,… …   Moby Thesaurus

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