II.   Instruments & Transactions

A Statement is a formal Instrument issued under the Corporate Securities standards of instruments and writing first formed under the Westminster laws of Great Britain from the 19th Century as a form and record of a summary presentation or declaration of facts concerning financial matters.

The word Statement originates in law in the later part of the 19th Century from combining two words state meaning “circumstances, position in society, rights or a person or thing; or estate” and –ment meaning “mind; or thought; or intention”. The word first appeared in the Bank Act 1869, the Debtors Act of 1869 and then Summary Justice Proceedings Act 1885.

In respect of Statements, there are several main types in Law being Affairs, Claim, Defence, Particulars and Account:

(i) Statement of Affairs is a written or printed instrument introduced in 1869 (Bank Act and Debtors Act) into bankruptcy proceedings whereby a bankrupt or debtor who has presentation a petition for liquidation or composition must produce at the first meeting of creditors a Statement of Affairs listing all of his creditors (secured and unsecured), with the value of the securities, a list of bills discounted and a statement of his property; and

(ii) Statement of Claim, also known as a Statement of Fact(s) is a written or printed instrument introduced in 1879 (Summary Jurisdiction Act) into summary justice proceedings whereby a Plaintiff shows the facts on which he relies to support his claim against a Defendant and the relief which he claims. Once submitted, it represents the original appearance and once delivered to the other party represents the commencement of the pleadings. The next step of proceedings is then usually a Statement of Defence; and

(iii) Statement of Defence is a written or printed instrument introduced in 1879 (Summary Jurisdiction Act) into summary justice proceedings whereby the Defendant in response to receiving a Statement of Claim and where the Defendant does not Demur to the whole of the Claim of the Plaintiff; and

(iv) Statement of Particulars is a written or printed instrument introduced in 1879 (Summary Jurisdiction Act) into summary justice proceedings whereby the Plaintiff after the Defendant fails to appear in which the particulars of his claim of debt or liquidated demand is restated and after a short period of time a third instrument may be entered being a judgment for the amount owed may then be entered; and

(v) A Statement of Account or Account Stated is when two persons having previously engaged in one or more monetary transactions together, close an Account by agreeing to the balance appearing to be due from one of them. The formal request of a Statement of Account or Account State operates as an admission of liability by the person against whom the balance appears.