business law

A unit that denotes a change in the interest rate of a financial instrument and is equal to 1/100th of 1% or 0.01%.

The amount of debt still due under an account or the principal balance remaining on a promissory note. 

A financial statement that consists of a three-part summary of a company's assets, liabilities, and ownership equity at a particular instance in time.  It is intended to show the financial condition of a company at that time.

The balance sheet states the assets on one side and the liabilities and equity, together, on the other side.  Both sides must balance out with each other.

The final, oversized payment due at the maturity date of a loan.  Typically used in car or home loans, the balloon payment consists of the remaining balance due under a loan, including any unpaid principal and interest. 

Definition

Definition

Of or relating to transactions between two parties who are independent and do not have a close relationship with each other. Presumably, these parties have equal bargaining power and are not subject to undue pressure or influence from the other party.

A mortgage loan where the interest rate may change in accordance with designated market indicator (such as the LIBOR), as opposed to a set interest rate (such at 6% annually).

 One method of accounting where economic events, such as income and expenses, are recorded at the moment they are incurred, as opposed to when they are received.  This provides a more accurate statement of the current financial state of a company and is the method more frequently used by companies.

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has been paid.

Illustrative caselaw

See, e.g. United States v. Richman, 93 F.3d 1085 (2d Cir. 1996).

Definition

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.