A confession of judgement clause is a contractual provision in which one party agrees in advance to the entry of a judgement against them without a formal court proceeding. This clause allows the other party, typically a creditor, to obtain a judgement against the debtor without going through the usual legal process. By signing a contract containing a confession of judgement clause, the debtor effectively waives their right to defend against a lawsuit or contest the validity of the creditor’s claims in court. Confessions of judgement clauses are often used in commercial contracts, such as loan agreements or leases, to provide creditors with a quick and efficient means of enforcing their rights in the event of default by the debtor. However, these clauses are subject to legal scrutiny and may be regulated or prohibited in some jurisdictions due to concerns about fairness and due process.
Permits judgment to be entered against a debtor without the creditor having to institute legal proceedings.
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This glossary post was last updated: 29th March 2024.
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