Sans recourse endorsement

Sans recourse endorsement,

Definition of Sans recourse endorsement:

  1. A clause inserted into an agreement which indicates that the endorser does not wish to incur liability if the document of title is not honored. It is essentially saying that the other party is entering into agreement at his or her own risk. For example, if Party A (the endorser) signs a bill of exchange containing a sans recourse endorsement with Party B (the endorsee) over a financial instrument, Party B signs into an agreement with Party C over the same instrument, and the instrument is dishonored, the Party B cannot seek payment from Party A. A sans recourse endorsement is often made by those in a representative capacity rather than those acting as principal. Also called without recourse or at the endorsees own risk. See also blank endorsement.

Meaning of Sans recourse endorsement & Sans recourse endorsement Definition