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LSDefine

Simple English definitions for legal terms

account stated

Read a random definition: dependent relevant revocation (DRR)

A quick definition of account stated:

Account stated is a document that shows how much money someone owes to another person. It's like a bill that summarizes all the transactions between them. If the person who owes money doesn't pay or question the bill within a reasonable time, the creditor can sue them for payment. This is called an account stated cause of action. The debtor can still challenge the bill if they can prove that there was a mistake or fraud.

A more thorough explanation:

Definition: Account stated is a document that shows how much a debtor owes a creditor. It is also a legal action that allows a creditor to sue a debtor for payment.

In many business situations, creditors and debtors have multiple transactions that involve frequent billing. Instead of signing a contract for each transaction, they agree to credit and bill each other. The creditor sends the debtor an account stated, which summarizes the amount that the creditor claims the debtor owes at a specific time.

If an account-stated relationship has been established, the debtor must either pay the debt or challenge the charges within a reasonable time. If the debtor does not pay, the creditor can sue for an account stated if the debtor never challenges the costs within a reasonable time.

The specifics of the cause of action vary by state, but generally, the parties must have previously conducted similar transactions, and the debtor accepted or implicitly agreed to pay the debt. The debtor may still be able to rebut the account stated claim after a long period of time if they can prove some form of fraud, mistake, or other exception.

Example 1: John and Jane have a business relationship where John provides consulting services to Jane. John sends Jane an account stated every month, summarizing the amount that Jane owes him. If Jane does not object to the charges within a reasonable time, she implicitly agrees to pay the debt.

Example 2: ABC Company sells products to XYZ Company on credit. ABC Company sends XYZ Company an account stated every month, summarizing the amount that XYZ Company owes. If XYZ Company does not object to the charges within a reasonable time, they implicitly agree to pay the debt.

These examples illustrate how an account stated works in a business context. Creditors send debtors an account stated, and if the debtor does not object to the charges within a reasonable time, they implicitly agree to pay the debt. This allows the creditor to sue the debtor for payment if necessary.

account receivable | accountant

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HopefullyInLawSchool
16:06
it means you will not be rejected today and may be accepted or WL in the future
Just got my Michigan rejection
BookwormBroker
16:10
same
RoaldDahl
16:10
@HopefullyInLawSchool: what if i already got rejected. does it mean anything
HopefullyInLawSchool
16:12
@RoaldDahl: Likely not however it could mean nothing
RoaldDahl
16:15
So if it means nothing does that mean something?
HopefullyInLawSchool
16:17
Possibly
RoaldDahl
16:26
Cool
RoaldDahl
16:26
thank you!!!! i hope it means something
pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
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