17

without such agreement, if the new promise i s found

ed on a new consideration, in which case the taking
of the new consideration amounts to the satisfaction
of the former contract.
In some jurisdictions, novation is a species of ac
cord and satisfaction.
See Composition; Compromise and settlement; No
vation; Settlement.
Affirmative defense. A defense which must be plead
ed affirmatively in the defendant's answer. Fed.R.
Civ.P. 8(c).

Accordant I;kord;nt/. Fr. and Eng. Agreeing; con

curring.
Accord executory. A bilateral agreement of settlement
which has not yet been performed (satisfied). Re
statement of Contracts, 4 1 7.
Accouchement I akuwshmon I . The act of a woman in
giving birth to a child. The fact of the accouchement,
which may be proved by the direct testimony of one
who was present, as a physician or midwife, is ofte.n
important evidence in proving parentage.
Account. A detailed statement of the mutual demand';
in the nature of debit and credit between parties,
arising out of contracts or some fiduciary relation. A
statement in writing, of debits and credits, or of re
ceipts and payments; a list of items of debits and
credits, with their respective dates. A statement of
pecuniary transactions; a record or course of busi
ness dealings between parties; a list or statement of
monetary transactions, such as payments, losses,
sales, debits, credits, etc., in most cases showing a
balance or result of comparison between items of an
opposite nature.
Any account with a bank; including a checking,
time, interest or savings account. U.C.C. 4--194.
Account means any right to payment for goods sold
or leased or for services rendered which is not evi
denced by an instrument or chattel paper, whether or
not it has been earned by performance. This covers
the ordinary account receivable. Rights arising un
der a ship charter are also accounts. See U.C.C.
9-106.
See also Aging of accounts; Blocked account;
Charge account; Common account; Community
account; Custody account; Contra accounts; Escrow
account; Impond account; Intermediate account;
Liquidated account; Ledger; Long account; Margin
account; Nominal account; Stated account; State
ment of account. For Open account, see Open.
Account annexed. Form of Simplified statement used
in pleading a common count (e.g. money had and
received) impliedly authorized for use under Fed.R.
Civil P. 8(a)(2).
Account balance. Difference between debit and cred
it sides of an account.
Account debtor. Person who is obligated on an
account, chattel paper or general intangible. U.C.C.
9-1 05(1)(a).
Account payable. A debt, owed by an enterprise,
that arises in the normal course of business dealings
and has not been replaced by a note payable of a
debtor. For example, bills for materials received but
not yet paid. Contract obligations owing by a person

ACCOUNT
on open account. State Tax Commission v. Shattuck,
44 Ariz. 379, 38 P.2d 63 1 , 639. A liability represent
ing an amount owed to a creditor, usually arising
from purchase of merchandise or materials and sup
plies; not necessarily due or past due.

Account receivable. A debt, owed to an enterprise,

that arises in the normal course of business dealings
and is not supported by negotiable paper. For exam
ple, the charge accounts of a department store. But
income due from investments (unless investments are
the business itself) is not usually shown in accounts
receivable. A claim against a debtor usually arising
from sales or services rendered; not necessarily due
or past due. For accounts receivable insurance, see
Insurance.
Account rendered. An account made out by the
creditor, and presented to the debtor for his examina
tion and acceptance. When accepted, it becomes an
account stated.
Account settled. One in which the balance has been
in fact paid, thereby differing from an account stated.
Account stated. An "account stated" arises where
there have been transactions between debtor and
creditor resulting in the creation of matured debts
and the parties by agreement compute a balance
which the debtor promises to pay and the creditor
promises to accept in full payment for the items of
account.
Adjunct account. An account that accumulates addi
tions to another account.
Bank account.

See Bank.

Book account.

See Book.

Closed account. An account to which no further

additions can be made on either side, but which
remains still open for adjustment and set-off, which
distinguishes it from an account stated.
Contra account. An account, such as accumulated
depreciation, that accumulates subtractions from an
othel' account, such as machinery. Contrast with
adjunct account, supra.
Current account. An open or running or unsettled
accoum. between two parties; the antithesis of an
account stated.
Mutual accounts. Accounts comprising mutual cred
its between the parties; or an existing credit on one
side which constitutes a ground for credit on the
other, or where there is an understanding that mutual
debts shall be a satisfaction or set-off pro tanto be
tween the parties.
Open account. An account which has not been final
ly settled or closed, but is still running or open to
future adjustment or liquidation. Open account, in
legal as well as in ordinary language, means an in
debtedness subject to future adjustment, and which
may be reduced or modified by proof.

Account, or account render. "Account," sometimes

called "account render," was a form of action at
common law against a person who by reason of some
. fiduciary relation (as guardian, bailiff, receiver, etc.)
was bound to render an account to another, but
refused to do so. Peoples Finance & Thrift Co. of
Visalia v. Bowman, 58 Cal.App.2d 729, 137 P.2d 729,
73 1.