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Account stated
Under United States law, account stated is a statement between a creditor (the person to whom money is owed) and a debtor (the person who owes) based upon a series of prior transactions that a particular amount is owed to the creditor as of a certain date. Often the account stated is a bill, invoice or a summary of invoices, signed by the customer or sent to the customer who pays part or all of it without protest.
An account stated may also be established when the debtor retains the statement of account (for example the bill or invoice) without objecting, for a reasonable length of time. "Reasonable" is determined by looking at the surrounding circumstances.〔1 Am. Jur. 2d Accounts & Accounting section 26 (West 2007).〕 An account stated is in the nature of a kind of settlement between the parties, such as when a person receives a bank statement, is capable and even obligated to check the math within a specified period of time, otherwise the account as between the parties is thus "stated." The key element is either the express agreement or an agreement implied by law under all the facts and circumstances.
==Purpose==
Arthur Corbin's influential treatise on Contracts explains the purpose and historic context of "account stated" as follows:
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