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LSDefine
Simple English definitions for legal terms
stated account
Read a random definition: N.
A quick definition of stated account:
An account is a record of money transactions between people or organizations. It can be used to keep track of money owed or paid, and to settle disputes. There are different types of accounts, such as bank accounts, joint accounts, and trust accounts. Some accounts have special rules, like tax-deferred accounts that let you save money without paying taxes until you withdraw it. Being accountable means being responsible for your actions and being able to explain them.A more thorough explanation:
A stated account is a detailed statement of the debits and credits between parties to a contract or to a fiduciary relationship. It is a reckoning of monetary dealings. For example, a trustee may balance the account at the end of each month to ensure that all transactions are accounted for.
In legal terms, an account stated is a balance that parties to a transaction or settlement agree on, either expressly or by implication. It can also refer to the agreement itself or to the assent giving rise to the agreement. For instance, if a creditor and a debtor wish to compromise or liquidate a disputed or unliquidated debt, they may do so by either a substituted contract or an accord. If, however, their agreement is in the nature of a computation, it is called an account stated.
Another example of a stated account is an account rendered, which is an account produced by the creditor and presented for the debtor's examination and acceptance. This type of account is often used in legal proceedings to prove the amount owed by the debtor.