Legal Definitions - confusion of debts

Confusion of debts occurs when the rights and duties of a creditor and debtor are blended in the same person, resulting in the extinction of obligations. This means that the creditor's right to collect the debt is no longer valid. This concept originated in Roman law and is also known as confusion or confusion of rights.

For example, if a person owes money to a company and then becomes a shareholder in that same company, the debt is considered to be confused or merged with the shareholder's rights. The shareholder cannot collect the debt owed to them because they are now part of the company that owes the debt.

Another example is when a debtor marries their creditor or becomes their heir. In this case, the debt is merged with the creditor's rights, and the creditor cannot collect the debt anymore.