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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.

account receivable | accountant

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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.
ParallelAgreeableOrangutan
11:53
I lived in Bloomington for a long time, can't speak to the law school but can answer Qs about the city if you'd like
@ParallelAgreeableOrangutan: How do you think it is to live in as a 20-something going to grad school? The comparison is Iowa city, so not an extremely high bar for liveliness. (No offense intended towards IC. I think it's a lovely place)
NosyBeagle
11:56
@NemoPropheta: taking it in august. feels like ill never be ready but f it we ball
I think the secret to happiness is fuck it we ball
is one ever truly ready for something? probably not. but fuck it we ball!
12:20
I went ahead and registered for August as well since it was free
12:20
Getting 2 180s back to back is better than one right
ronniedoeslaw
12:26
In all of your research, what minimum LSAT score do you believe gets you into UIC law?
12:27
I remember the last guy on here who was convinced he was gonna get a 180 bc he scored in that range on PTs
12:28
🤐
12:29
ugh someone come rub my bellly
12:33
@esoterica: he wasnt on that grindset mentality. im him
12:34
Im gonna drink so much saratoga water on test day
ParallelAgreeableOrangutan
12:43
@LawOfAchilles: (hiii sorry so slow, am at work) Bloomington is lovely, I loved it as an undergrad and as a 20something non-student.
ParallelAgreeableOrangutan
12:45
If you're outdoorsy, it's nice--obv no coasts or mountains, but two small lakes really close, lots of places you can go on a lowkey hike or camp without paying park fees or anything really
ParallelAgreeableOrangutan
12:47
super bikable, decent food to be had, things to do but not so much that you'll be distracted and never study lol. idk I'm a fan haha, I miss it
lmao I just got the LSAC notif that I'm under review at IU Maurer
ParallelAgreeableOrangutan
13:11
May you have better luck than I did :)
YAYYY JUPITER
@LawOfAchilles: if you like the outdoors, you're gonna love bloomington.
both uiowa and iu have a good reputation, especially with midwestern law firms. their alumni resources are pretty top notch too.
14:11
Hey guys, are any T14 schools doing tours during the summer?
NosyBeagle
14:24
@NemoPropheta: the lsat was free for you? lucky
14:26
who else piss on the floor during their lsat
sloth i gotta know about caesar beans
14:35
@NosyBeagle: yeah you just have to be poor and then they let you take it for free twice
NosyBeagle
14:54
ah ok it's a fee waiver. i think ill do that
NosyBeagle
14:54
the test got more expensive since the last time i took it
NosyBeagle
14:54
smh
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