"Mutual account" defined.

- Mutual account is one based on course of dealing wherein each party has given credit to the other, on faith of indebtedness to that party. Gunn v. Gunn, 74 Ga. 555, 58 Am. R. 477 (1885); Reid v. Wilson Bros., 109 Ga. 424, 34 S.E. 608 (1899); Howard v. Blanchard, 29 Ga. App. 469, 116 S.E. 33 (1923); Turner v. Davidson, 188 Ga. 736, 4 S.E.2d 814 (1939).

Basis for doctrine of mutual accounts.

- Mutual accounts are based upon express or implied agreement of parties. Gunn v. Gunn, 74 Ga. 555, 58 Am. R. 477 (1885); Mobley, Ward & Davis v. Pendergrast, 8 Ga. App. 565, 70 S.E. 18 (1911).

Doctrine of mutual account rests not on notion that every credit in favor of one party is admission by that party of indebtedness to the other or new promise to pay, but upon mutual understanding, either express or implied from conduct of both parties, that they will continue to credit each other until one or both parties desire to terminate course of confidential dealing, at which time the balance will be ascertained, become due, and be paid by the one finally indebted. Turner v. Davidson, 188 Ga. 736, 4 S.E.2d 814 (1939).

For mutual account to exist, there must be reciprocal extension of credit between the parties, so that each becomes both creditor and debtor of the other. Perry v. Laurens Hdwe. Co., 93 Ga. App. 251, 91 S.E.2d 375 (1956).

In order to make a mutual account, there must be indebtedness on both sides; and in the absence of evidence of such mutual dealings and indebtedness, mere entries of credits of partial payments made on a debt evidenced by open account will not make it such a mutual account as will prevent the statute of limitations from beginning to run until the date of the last item thereof. Vanguard Ins. Agency & Real Estate Co. v. Walker, 157 Ga. App. 838, 278 S.E.2d 723 (1981).

Entry of partial payments is immaterial. Liseur v. Hitson, 95 Ga. 527, 20 S.E. 498 (1894).

Mere entries of credits of partial payments made on debt evidenced by open account will not make it such a mutual account as will prevent statute of limitations from beginning to run until date of last item thereof. Williams v. Leide Assocs., 133 Ga. App. 454, 211 S.E.2d 407 (1974).

If items in favor of one side are mere payments on indebtedness to the other, the account is not mutual. Turner v. Davidson, 188 Ga. 736, 4 S.E.2d 814 (1939).

Presumption of law exists that agreement once proved continues. Gunn v. Gunn, 74 Ga. 555, 58 Am. R. 447 (1885).

Whether or not account is mutual is question of fact. Turner v. Davidson, 188 Ga. 736, 4 S.E.2d 814 (1939).

Jury is to decide question of whether account is mutual or not. Kirven & Co. v. Thornton, 110 Ga. 276, 34 S.E. 848 (1899).

Statute of limitations begins to run with respect to mutual accounts from date of last item embraced within mutual dealings. Turner v. Davidson, 188 Ga. 736, 4 S.E.2d 814 (1939).

Mutual claims between shareholders and former partners.

- Any mutual claims in general accounting between shareholders and former partners in corporation formed from partnership, for indebtedness existing between partner and corporation, would not be barred by the running of the statute. Jones v. J.S.H. Co., 199 Ga. 755, 35 S.E.2d 288 (1945).

Return of refrigerator was not transaction in which buyer extended credit to seller, absent indication that buyer did not receive credit for value of refrigerator immediately upon its return. Perry v. Laurens Hdwe. Co., 93 Ga. App. 251, 91 S.E.2d 375 (1956).

Setoff of barred account against promissory note given in such dealings will not be permitted. Adams v. Holland, 101 Ga. 43, 28 S.E. 434 (1894).

Cited in Brock v. Wildey, 125 Ga. 82, 54 S.E. 195 (1906); Youmans v. Moore, 11 Ga. App. 66, 74 S.E. 710 (1912); Bank of Blakely v. Buchannon, 13 Ga. App. 793, 80 S.E. 42 (1913); Rountree v. Brown, 22 Ga. App. 79, 95 S.E. 375 (1918); Daniels v. Booker, 23 Ga. App. 644, 99 S.E. 228 (1919); Flynn-Harris-Bullard Co. v. Butler, 27 Ga. App. 419, 108 S.E. 805 (1921); Bird v. Chandler, 166 Ga. 707, 144 S.E. 265 (1928); Marks v. Maxwell Bros. Furn. Co., 50 Ga. App. 325, 177 S.E. 920 (1935); Robinson v. Jackson, 57 Ga. App. 431, 195 S.E. 877 (1938); Vinson v. Citizens & S. Nat'l Bank, 208 Ga. 813, 69 S.E.2d 866 (1952); Blackstock v. Murphy, 220 Ga. 661, 140 S.E.2d 902 (1965); Yeargin v. Bramblett, 115 Ga. App. 862, 156 S.E.2d 97 (1967).

Am. Jur. 2d.

- 1 Am. Jur. 2d, Accounts and Accounting, § 23. 51 Am. Jur. 2d, Limitation of Actions, § 207.

C.J.S.

- 54 C.J.S., Limitation of Actions, §§ 9, 178.

ALR.

- Limitation of actions: acknowledgment, new promise, or payment by grantee of mortgaged premises, 18 A.L.R. 1027; 142 A.L.R. 615.

Check in payment of interest or installment of principal as tolling statute of limitations, 28 A.L.R. 84; 125 A.L.R. 271.

Payment on account as removing or tolling statute of limitation, 36 A.L.R. 346; 156 A.L.R. 1082.

What constitutes an open, current account within the statute of limitations, 39 A.L.R. 369; 57 A.L.R. 201.

Bar of statute of limitations against action to recover principal of obligation as affecting right to recover interest, 115 A.L.R. 728.

Ratification of unauthorized credit on debt or obligation as tolling, or removing bar of, statute of limitations, 124 A.L.R. 234.

When is account "mutual" for purposes of rule that limitations run from last item in open, current, and mutual account, 45 A.L.R.3d 446.