A statement between a creditor and a debtor that settles the total amount of debt owed to the creditor.
There are three elements of an account stated: (1) There exists prior transactions between the parties, creating a creditor-debtor relationship; (2) An agreement, express or implied, between the parties as to the total amount due; and (3) A promise by the debtor, express or implied, to repay the amount due.
Definition from Nolo’s Plain-English Law Dictionary
1) A statement of the amount that parties to a transaction, loan, or settlement agree is owed by one to the other. 2) The name for a cause of action in a lawsuit brought to collect the amount the parties have agreed is owed.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:10 pm