11:53
I don't really know where I want to end up practicing yet, but I've enjoyed living in the midwest so far. I think I might ultimately like to end up as in-house corporate for the work life balance.
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LSDefine
Simple English definitions for legal terms
account stated
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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.