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- DictionaryWithout recourse
- ▪ a formula used to disclaim responsibility for future nonpayment, especially of a negotiable financial instrument
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without recourse. A phrase meaning that one party has no legal claim against another party. It is often used in two contexts: 1. In litigation, someone without recourse against another party cannot sue that party, or at least cannot obtain adequate relief even if a lawsuit moves forward.
- What Is Without recourse?
- Understanding Recourse
- Sales Without Recourse
- Without Recourse in Banking
"Without recourse" means that one party cannot obtain a judgment against, or reimbursement from, a defaulting or opposing party in a financial transaction. When the buyer of a promissory noteor other negotiable instrument enters into a "no recourse" agreement, they assume the risk of default.
Financing can be extended with or without recourse. Under financing "with recourse," if the lender cannot collect on their payment from the party ultimately responsible for payment of the financial obligation, the lender can go back to the borrower to seek payment on the amount due. Recourse may allow the lender to seize not only pledged collateral...
"Without recourse" means without liability. All sales agreements entered into by a buyer and seller contain rights and responsibilities for both parties. A sale without recourse means the buyer accepts all risks associated with the purchase. This often occurs when items are sold "as is" without any guarantees. The buyer has "no recourse" against th...
When a financial instrument contains the words "without recourse," the endorser is released from future claims. If a signed check includes "without recourse" the endorser is not subject to liability should the check bounce due to insufficient funds. For example, assume Alice makes out a check to Bob. The payee, Bob, decides to pay off his debt to M...
- Julia Kagan
WITHOUT RECOURSE definition: a phrase written on a bill of exchange (= signed document promising to pay someone money) in order…. Learn more.
WITHOUT RECOURSE meaning: a phrase written on a bill of exchange (= signed document promising to pay someone money) in order…. Learn more.
without recourse - A term used to denote that a person who signs a negotiable document, such as a check or a promissory note, is not liable if it is not paid or delivered.
Without recourse is a legal term that refers to a situation where the party receiving payment or transferring a negotiable instrument, such as a promissory note or a check, assumes no liability or responsibility for any future claims or disputes related to the instrument.
Without Recourse. A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible.
