Texas Demand for Payment of an Open Account by Creditor

• Category: Loans and Lending - Payment Demands
• State: Multi-State
• Control #: US-0245BG
• Format: Word; Rich Text

Description

An open account is created when the parties intend that the individual items of the account will not be considered independently, but as a connected series of transactions. In addition, the parties must intend that the account will be kept open and subject to a shifting balance as additional related entries of debits and credits are made, until either party decides to settle and close the account. In an open account, there is but one single and indivisible liability arising from the series of related and reciprocal debits and credits. This single liability is to be fixed at the time of settlement, or following the last pertinent entry of the account. Finally, the balance must be mutually agreed on by the parties or implicitly imposed on them by law.

Texas Demand for Payment of an Open Account by Creditor is a legal document used by creditors in the state of Texas to formally request payment for an outstanding debt from a debtor. This document serves as a final notice to the debtor, urging them to settle the unpaid balance promptly. It is crucial for creditors to understand the different types of Texas Demand for Payment of an Open Account by Creditor to ensure appropriate action is taken. 1. Default Demand: A default demand is issued when a debtor fails to fulfill their payment obligations by the agreed-upon due date. Creditors can use this type of demand to remind debtors of their legal responsibility and urge them to settle the outstanding balance promptly. 2. Breach of Contract Demand: If the debtor has violated the terms and conditions outlined in a contractual agreement, a breach of contract demand can be employed. This type of demand emphasizes the breach of contract and seeks the full payment of the outstanding debt. 3. Final Demand: A final demand is usually the last notice issued before initiating legal action against the debtor. Creditors use this demand to explicitly state their intent to pursue legal remedies if the outstanding debt is not settled within a specific timeframe. 4. Dispute Resolution Demand: In cases where the debtor disputes the validity of the debt or has concerns related to the account, a dispute resolution demand is issued. This demand aims to encourage dialogue and negotiate a mutually agreeable resolution between the creditor and debtor. 5. Statutory Demand: Texas law allows for a statutory demand to be made for certain types of debts. This demand is typically used for larger, more complex debts. It must adhere to specific legal requirements, including a specific amount owed and a warning that failure to comply may result in legal action. When drafting a Texas Demand for Payment of an Open Account by Creditor, it is essential to include relevant information, such as the creditor's name and contact details, the debtor's name and contact details, the outstanding balance, the payment due date, and any applicable late fees or interest charges. Additionally, the demand should clearly state the consequences of non-payment, such as legal action or credit reporting. Keywords: Texas Demand for Payment of an Open Account by Creditor, Texas law, outstanding debt, debtor, creditor, default demand, breach of contract demand, final demand, dispute resolution demand, statutory demand, payment obligations, legal action.