CIVIL PROCEDURE — Account Stated — When may be reopened or set aside
Ratio Decidendi
Per Chukwuma-Eneh, JSC, in Salzgitter Stahl GmbH v. Tunji Dosumu Industries Limited (2010) NLC-123-30-2001(SC) at p. 19, para. D – p. 20, para. A:
"An account stated apart from being a contract binding on the parties can only be set aside as any other contracts on the well established grounds in law and otherwise an account stated cannot be reopened or lightly challenged on its correctness... There is no claim before the Court to set aside exhibit G or reopen the account stated like every other contract on grounds of fraud; this is usually the case where a party is alleging fraud, mistake of fact, undue influence, want or failure of consideration as the case may be. The defendant has not so contended on any of those grounds here."
Explanation / Scope
This principle establishes that an account stated is binding as a contract and can only be set aside on established grounds such as fraud, mistake of fact, undue influence, or want of consideration. It cannot be lightly challenged. The principle applies where an account stated is relied upon. It ensures that settled accounts are respected. The principle reflects the contractual nature of account stated. It prevents parties from reopening settled accounts without grounds. The court must require proof of grounds for setting aside. The principle provides guidance on challenging an account stated.