Legal Definitions - liquidated account

Definition: A liquidated account is an account whose assets are clearly ascertained, either by agreement of the parties or by law.

Example: A company and its supplier agree on the price and quantity of goods to be delivered. The supplier delivers the goods and the company pays the agreed-upon amount. This is a liquidated account because the assets (goods and money) are clearly ascertained by agreement.

Explanation: In a liquidated account, there is no uncertainty or dispute about the assets involved. The parties have agreed on the amount and nature of the assets, or the law has determined them. This is in contrast to an unliquidated account, where the amount or nature of the assets is uncertain or disputed. For example, if a company is suing a former employee for damages caused by their negligence, the amount of damages may be unliquidated until a court determines the amount owed.