Legal Question in Business Law in Michigan

Re: stated account

An account stated is usually an open credit account that has been closed and billed, i.e., "stated." This might be formal credit that you get with an application or it could be a promise to pay for services as they are rendered. For instance, if you hire a vendor and that vendor does the work for you and bills you, then you have an account stated. When you get the bill, you have the opportunity to object to or dispute the amount. If you don't do so, then the vendor can sue you for the amount billed. Your defenses in this situation are usually: 1) the work was never done or completed properly; 2)you disputed the amount charged; 3) you already paid it; or 4) you never received the bill. If you didn't dispute the bill when you received it, then you will probably have to show why. There are other things that can pop up during this type of suit, but these are the highlights.