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What Does Without Recourse Mean

Without Recourse

Without recourse is a legal phrase used by an endorser of a negotiable instrument to signify that if the payment of the instrument is denied or refused, the endorser will not be held responsible. An endorser is an individual who signs a document that didn't originally make it.


The negotiable instruments involved with this definition typically refer to business or personal checks or promissory notes. An individual who endorses such an instrument will attach the phrase "without recourse" to specifically decline the responsibility of payment. Through the incorporation of this phrase, the endorser declines responsibility by virtue of the endorsement and becomes merely the assignor of the title to the negotiable instrument.

The without recourse clause is governed by the broader laws associated with the distribution of Commercial paper, which is codified through the Uniform Commercial Code of the United States Federal Government. As a result, a without recourse attachment will be honored by all courts assuming basic requirements are met.



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