Ratio Decidendi

Per Chukwuma-Eneh, JSC, in Salzgitter Stahl GmbH v. Tunji Dosumu Industries Limited (2010) NLC-123-30-2001(SC) at p. 17, para. D – p. 18, para. A; and p. 19, paras. B–C:

"The phrase 'account stated' refers to the agreement itself or to the assent giving rise to the agreement. Simply put, it means a balance that parties to a transaction or business agree on, either expressly or by implication... this definition recognizes that an account stated is founded on contract and otherwise a settled account which is not subject to be reopened particularly where settled in full knowledge of the facts as in this case and may be proceeded with without proving the correctness of the account... once an account stated has been made out as I hold the plaintiff has done in this case, a prima facie case has been established and the onus is on the defendant as here to disprove liability."
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Explanation / Scope

This principle establishes that an account stated is an agreement on a balance, founded on contract. Once made out, it establishes a prima facie case, and the burden shifts to the defendant to disprove liability. The principle applies where an account stated is relied upon. It ensures that settled accounts are enforceable. The principle reflects the contractual nature of account stated. It prevents defendants from denying liability without evidence. The court must require the defendant to disprove liability. The principle provides guidance on the effect of an account stated.

Cases Applying This Principle

None recorded.