Confession Of Judgment Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Confession Of Judgment, written in plain English, along with examples of how it is used.

What is Confession Of Judgment?

A written statement where the defendant accepts all the allegations imposed upon him by the plaintiff and agrres to pay for damages.Legal action can be taken against him in case on non performance of the terms mentioned in the statement.If the terms are fullfilled it leads to termination of further legal proceedings.

History and Meaning of Confession Of Judgment

A confession of judgment is a written agreement between two parties that allows one of them to obtain a judgment to collect what is owed without notice or a hearing. The party giving the confession of judgment is referred to as the "debtor," and the party obtaining it is the "creditor." This concept has been used in the United States since the early 1800s, and it is commonly found in personal property financing agreements, commercial contracts, and other legal settings.

Confessions of judgment gained notoriety because they could be used to enforce exorbitant, often predatory lending practices by creditors who would include in large, complicated contracts buried clauses that allowed them to obtain immediate default judgments against debtors. In modern times, several states have enacted laws that regulate the use of confessions of judgment in lending and commercial contracts.

Examples of Confession Of Judgment

  1. A contractor agrees to pay back a loan to a vendor in six months. In case of non-repayment, the vendor may execute a confession of judgment, and the contractor will waive his rights to notice, pleadings, or a hearing on the matter.
  2. A landlord includes a confession of judgment clause in a commercial lease requiring the commercial tenant to waive notice and the right to a hearing in the event of default.
  3. A doctor enters into a loan agreement that includes a confession of judgment in case of non-repayment. The doctor will waive notice, pleadings, and hearing rights as well.

Related Legal Terms

  1. Default Judgment: A ruling made by a judge against a party in a lawsuit who fails to appear in court or answer the complaint.
  2. Consent Judgment: An agreement between two parties that both parties request the court to enter into its records, which can be enforced by the court.
  3. Stipulated Judgment: In a civil lawsuit, both parties can sometimes agree on the outcome of the case and request the court to sign off on it. If the judge agrees, he or she will issue a stipulated judgment.