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Account stated refers to a document summarizing the amount a debtor owes a creditor. An account stated is also a cause of action in many states that allows a creditor to sue for payment.
Specifically, an action on account is appropriate if the parties have conducted a series of transactions for which a balance remains to be paid. The plaintiff has the burden of making a case by proving an offer, an acceptance, consideration, correctness of the account, and the reasonableness of the charges.
The elements of account stated are: (1) prior transactions between the parties which establish a debtor-creditor relationship; (2)an express or implied agreement between the parties as to the amount due; and (3) an express or implied promise from the debtor to pay the amount due.
Account stated refers to a document summarizing the amount a debtor owes a creditor. An account stated is also a cause of action in many states that allows a creditor to sue for payment.
An Account Stated establishes an implied contract, whereas a breach of contract traditionally refers to an expressly written contract. Account Stated is used when no contract exists or when the plaintiff cannot prove the existence of the contract.
Under California law, "[a]n account stated is an agreement, based on prior transactions between the parties, that the items of an account are true and that the balance struck is due and owing."4 The three elements of the claim are 1) previous transactions between the parties establishing the relationship between debtor ...