A confession of judgment is when a person who is being sued for damages confesses that he or she owes the damages, and agrees to pay the full amount back. Confessions of judgment are carried out through the signing of the written agreement between the two parties. They prevent the need for further litigation.
Going to court to dispute an issue can take a long time and cost a lot of money in attorneys' fees. So, sometimes, if a defendant believes that he or she will lose the case anyway, he or she may sign a confession of judgment to prevent having to go to court. This circumvents the whole trial procedure. However, once a person signs a confession of judgment, he or she will be legally obligated to pay the plaintiff the full amount of damages.