Legal Definitions - confusion of rights

Definition: Confusion of rights occurs when the same person holds both the rights and duties in a contract, resulting in the extinction of obligations. This is also known as a merger of rights and duties. It can happen when a debtor becomes a creditor's heir or when a debtor marries a creditor. The creditor's right to collect the debt is extinguished.

Example: John owes $10,000 to Mary. Mary dies and leaves John $10,000 in her will. John inherits the money and becomes both the debtor and the creditor. The debt is extinguished, and John no longer owes Mary the money.

Explanation: In this example, confusion of rights occurs because John becomes both the debtor and the creditor. As a result, the debt is extinguished, and John no longer owes Mary the money. This is because the same person cannot owe and be owed the same debt at the same time.