Open Account


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Open Account

An unpaid or unsettled account; an account with a balance that has not been ascertained, that is kept open in anticipation of future transactions. A type of credit extended by a seller to a buyer that permits the buyer to make purchases without a note or security and is based on an evaluation of the buyer's credit. A contractual obligation that may be modified by subsequent agreement of the parties, either by expressed consent or by consent implied from the conduct of the parties, provided the agreement changing the contractual obligation is based upon independent consideration.

References in periodicals archive ?
Peru: About 83% of those polled do terms on open account with a fairly balanced split between offering 30, 60 or 90 days.
1367 regulations there is a repayment on open account debt to which gain might be recognized only if there is a net decrease in the amount of such indebtedness for the year, determined by comparing the amounts outstanding at the beginning and end of the tax year.
First, consider advising clients to set up notes for their open account debt so that any subsequent repayment income would be capital gain, rather than ordinary.
International collections provide a means of exchanging goods for payment with greater control than for sales on open account.
Repayments and advances are treated differently for open account debt than for a shareholder loan evidenced by a note.
Usually banks were reluctant to open accounts of elected representatives and government officers, the committee members noted.
The committee noted that several candidates, including Nuzhat Sadiq, had complained about the reluctance of banks to open accounts for them just because they were politicians.