confession of judgment
- A clause, typically in a promissory note, that enables the lender to obtain a court order for the repayment of the debt without prior notification to the defaulting borrower
- The caught off guard business owner was taken aback when she realized she had signed a loan agreement with a confession of judgment clause.
- In a desperate need for funds, John agreed to the confession of judgment, but regretted it when his default led to immediate collection measures.
- To safeguard their credit, many lenders opt to include a confession of judgment in their contracts.
Provide Feedback
