Legal Definitions - liquidated account

A liquidated account refers to a financial claim or debt where the exact amount owed is fixed, certain, or readily ascertainable. This means that there is no dispute about the *quantity* of money involved, even if there might be a disagreement about whether the money is actually owed. The amount has been determined either by a clear agreement between the parties, by a straightforward calculation based on an agreement, or by operation of law.

• Example 1: Monthly Utility Bill

  Imagine a homeowner receives their monthly electricity bill, which clearly states a total of $112.75 based on their electricity usage and the utility company's published rates.

  Explanation: This is a liquidated account because the amount owed ($112.75) is precise and determined by a clear calculation based on an established agreement (the utility company's service terms) and measurable usage. There is no ambiguity about the *amount* of the debt; the only potential dispute might be over whether the usage was accurately measured or if the bill was paid.

• Example 2: Fixed-Rate Mortgage Payment

  A couple has a fixed-rate mortgage on their home, and their monthly payment is a consistent $1,850 for principal and interest, as detailed in their loan agreement.

  Explanation: The $1,850 monthly mortgage payment represents a liquidated account. The amount is fixed, certain, and was agreed upon in advance by both the borrowers and the lender. This makes it clear exactly how much is due at each payment interval, without any need for further calculation or negotiation regarding the payment amount itself.

• Example 3: Unpaid Invoice for Professional Services

  A marketing consultant completes a project for a client and sends an invoice for $5,000, which was the agreed-upon flat fee for the entire project as outlined in their service contract.

  Explanation: This invoice represents a liquidated account. The amount of $5,000 is specific, was agreed upon by contract before the work began, and is clearly stated. While the client might potentially dispute whether the services were delivered satisfactorily, they cannot dispute the *amount* owed if the services were completed according to the agreement.