In the breach of contract context, one of the most vexing and frustrating questions facing clients is
“Why does it take so long for me to collect what (the defendants) owe me?”
This instructional video will hopefully explain one way that, in the right circumstances, can fast-track your ability to recover monies that are owed – at least under New York law.
This doctrine is known as “Account Stated.”
“What is an Account Stated?” you ask.
It’s an agreement, such as a bill for services rendered, where neither side disputes that the bill is correct, and the money is owed.
One of the most common ways that this type of claim is established, or proven, is if the defendant did not object to the bill within a reasonable time after receiving the bill, or made a significant partial payment on the account.
At this point, the following caveat bears mention:
If there is a material dispute over the validity of the contract, account stated will not be an effective means of collection.