Define: Action On Account

Action on account is a legal action brought by one party against another for an unsettled or disputed account. It typically involves a claim for the recovery of money owed or an accounting of financial transactions between the parties. In an action on account, the plaintiff alleges that the defendant owes them a sum of money for goods sold, services rendered, or other financial obligations, and seeks to enforce payment or obtain a judgment for the amount owed. The action may also involve a request for an equitable remedy, such as an injunction or specific performance, depending on the nature of the dispute. Action on account is a common legal remedy used to resolve disputes over financial matters and to enforce contractual or fiduciary obligations between parties.

The action on account was one of the ancient forms of action. Dating back to the thirteenth century, it offered a remedy for the breach of obligations owed by fiduciaries. Originally, the action allowed lords to recover money wrongfully withheld by the bailiffs of their manors, whom they appointed to collect fines and rents. Later, statutes extended the right so that lawsuits could be brought against persons who were required to act primarily for someone else’s benefit, such as guardians and partners. Eventually, the action withered away because its procedure was too cumbersome, and fiduciaries came under the jurisdiction of the special court of the king, called the Chancery.

An action on account is different from a modern-day accounting, which is a settling of accounts or a determination of transactions affecting two parties, often when one party asks a court to order the other party to account.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.