Running Account Law and Legal Definition

Running account is an open, unsettled, revolving credit facility offered by a seller to a buyer. Using a running account, a buyer can continually buy or obtain goods or services up to the limit agreed with the seller. Amounts paid by the buyer can be used for making further purchases. Generally, a running account is made with a firm, store, or business, but the account will be maintained in a bank to which the salary, wages, or pensions are paid on a regular basis. When creating a running account, the buyer agrees to settle the account within the agreed date.