Confusion Of Goods


DEFINITION of 'Confusion Of Goods'

A legal term for when the goods or property of two or more parties become commingled to the point where each party's respective items can't be readily determined.

While the term can apply to money or property, it is most commonly used with physical goods such as fuel oils, grains, produce or minerals.

Confusion of goods may also be called "intermixture of goods".

BREAKING DOWN 'Confusion Of Goods'

Confusion of goods can either happen on purpose or by accident. If two or more people mutually decide to commingle their goods, then it is considered for the betterment of each, and no criminal or negligent act is taking place. However, if one person deliberately mixes goods or property with another without their consent, it is considered unlawful and the unknowing party may be awarded full rights to the entire property.

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  1. When is it acceptable for a broker to commingle funds with a client?

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  3. Can mutual funds invest in options and futures?

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