Account Stated is a legal term that refers to an agreement between two parties regarding the balance owed on an account. It is a confirmation or acknowledgement by one party (usually a debtor) of the correctness and accuracy of the account balance presented by the other party (usually a creditor). This agreement can be expressed verbally, in writing, or through the conduct of the parties involved. Once an account stated is established, it becomes a legally binding agreement, and any disputes or discrepancies regarding the account balance are considered resolved.
Account stated is a legal concept that refers to an agreement between parties regarding the balance owed on an account. It arises when one party sends a statement of account to another party, and the receiving party does not object to the statement within a reasonable time. By not objecting, the receiving party is deemed to have accepted the statement as accurate and agreed to pay the balance stated. Once an account stated is established, it becomes a legally enforceable obligation, and the party owing the balance can be held liable for payment.
Q: What is an account stated?
A: An account stated is a legal term that refers to an agreement between two parties regarding the balance owed on an account. It is a confirmation of the amount owed and serves as evidence of the debt.
Q: How is an account stated created?
A: An account stated is typically created when one party sends a statement of account to the other party, and the receiving party does not object to the statement within a reasonable period of time. Silence or failure to dispute the statement is considered acceptance of the account stated.
Q: What information should be included in an account stated?
A: An account stated should include details such as the name and contact information of both parties, a list of transactions, dates, amounts, and any applicable interest or fees. It should also clearly state the total balance owed.
Q: Can an account stated be modified or disputed?
A: Yes, an account stated can be modified or disputed if there is a genuine disagreement between the parties regarding the accuracy of the statement. However, it is important to raise any objections or disputes within a reasonable time frame.
Q: What happens if one party disputes an account stated?
A: If one party disputes an account stated, it may lead to negotiations or legal proceedings to resolve the dispute. The burden of proof lies with the party disputing the account stated to provide evidence supporting their claim.
Q: Is an account stated legally binding?
A: Yes, an account stated is legally binding as it represents an agreement between the parties regarding the balance owed. It can be used as evidence in court to enforce the debt.
Q: Can an account stated be used as evidence in court?
A: Yes, an account stated can be used as evidence in court to prove the existence and amount of a debt. It is often considered strong evidence, especially if the receiving party did not object to the statement within a reasonable time.
Q: How long is a reasonable time to object to an account stated?
A: The definition of a reasonable time may vary depending on the circumstances and jurisdiction. Generally, it is advisable to object to an account stated within 30 days of receiving the statement to avoid any potential disputes.
Q: Can an account stated be used for both personal and business debts?
A: Yes, an account stated can be used for both personal and business debts. It is a common practice in various industries to send statements of account to customers or clients to confirm the balance owed.
Q: What should
DismissThis site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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