How To Prove A California Account Stated Defense

 

How To Prove A California Account Stated Defense

 

In California, a defense of Account Stated is defined as:

Account stated is an account presented by a creditor to his or her debtor which by implied or express acceptance has been agreed upon by both parties as correct.

It simply means:

When one party sends a bill to another and there is no disagreement expressed as to the amount, it is considered to be correct.

There are 3 elements of the defense:

  • Element 1. There was a previous transaction between the parties establishing the relationship of debtor and creditor. A previous transaction occurred between the two parties, creating a formal relationship where one party owes money to the other, which is a key part of the Account Stated Defense in legal terms.

    Facts that might support this element look like:

    * The parties engaged in a prior transaction where the defendant received goods and services from the plaintiff, establishing a debtor-creditor relationship.
    * The plaintiff issued invoices to the defendant for the goods and services provided, which the defendant acknowledged receipt of.
    * The defendant made partial payments on the outstanding balance, further confirming the existence of a debtor-creditor relationship.
    * The parties had a history of transactions, with documented communications regarding payment terms and outstanding balances.
    * The defendant did not dispute the amounts owed in previous correspondence, indicating acceptance of the debt.

  • Element 2. An agreement exists between the parties, express or implied, on the amount due from the debtor. An agreement, either clearly stated or understood between the parties, confirms the amount the debtor owes, which is a key part of the Account Stated Defense in legal disputes over debts.

    Facts that might support this element look like:

    * The parties engaged in multiple transactions over a specified period, during which they regularly communicated about the amounts owed.
    * The debtor acknowledged the outstanding balance in written correspondence, indicating acceptance of the amount due.
    * Both parties maintained a consistent record of invoices and payments, reflecting an understanding of the total amount owed.
    * The creditor provided detailed statements to the debtor, who did not dispute the accuracy of the amounts listed.
    * The debtor made partial payments towards the stated amount, demonstrating recognition of the debt and agreement on its existence.

  • Element 3. There is a promise by the debtor, express or implied, to pay. In an Account Stated Defense, the debtor must show that they have made a clear promise, either directly or indirectly, to pay the amount owed, indicating their acknowledgment of the debt.

    Facts that might support this element look like:

    * The debtor acknowledged receipt of the invoice and verbally confirmed their intention to pay the outstanding balance.
    * The debtor made partial payments towards the account, indicating an acceptance of the debt and a promise to continue payments.
    * The debtor’s consistent communication regarding the account balance demonstrated an implied agreement to settle the debt.
    * The debtor signed a contract that included terms for payment, establishing a clear promise to pay the specified amount.
    * The debtor’s actions, such as requesting additional services while acknowledging the existing balance, implied a commitment to fulfill the payment obligation.

(See Bennett v. Potter, 180 Cal. 736, 745 [ 183 P. 156] (C.A. Superior Court 1919).)
If you’re representing yourself in court and plan to assert a Defense of Account Stated, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Our resources can help you navigate this complex process effectively.

Prove Your CA Account Stated Defense

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