Definition of Without recourse:
"Without recourse" is a phrase that has several meanings. In a general sense, without recourse pertains to when the buyer of a promissory note or other negotiable instrument assumes the risk of default. No recourse means that the person cannot obtain a judgment against, or reimbursement from, a defaulting or opposing party.
Without subsequent liability. As a legal term it signifies that a buyer (and not the seller) of an asset, or the holder (and not the drawer) of a negotiable instrument, is assuming the risk of non-performance of the asset or the non-payment of the instrument. See also with recourse.
A formula used to disclaim responsibility for future nonpayment, especially of a negotiable financial instrument.
Financing can be extended with or without recourse. Under financing with recourse, in the event that 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.
How to use Without recourse in a sentence?
- Sales without recourse means that the buyer accepts the risk associated with purchasing an item.
- Without recourse can mean that the buyer of a promissory note or other negotiable instrument assumes the risk of default.
- A sale that is with recourse means that the seller bears responsibility for the sold asset if it turns out to be defective, and the buyer can seek recourse from the seller.
- The drawer of funds is not liable and can discount without recourse.
Meaning of Without recourse & Without recourse Definition