Open account. Same as running- account, although the term open account is usually employed.
In trade (particularly the wholesale trade) when an open account is established the buyer
arranges with the seller to receive credit for a certain period on purchases made. He does not give
a promissory note or furnish security of any kind, but when the period of credit agreed upon has
elapsed after a (after each) purchase he makes payment for it by check or bill of exchange or in
whatever way may have been predetermined by the seller and buyer. If the period of credit is
exceeded without payment by the buyer the seller is considered to have or perhaps by stipulation
has the right to draw on the buyer for the amount due.  The name open account also is applied to
an account in which some item is not settled between the parties.