"Without recourse" is a term used in financial agreements to indicate that one party cannot seek repayment or legal action against the other if a borrower defaults. In these agreements, the risk of default shifts from the seller to the buyer.

For example, when a lender sells a promissory note "without recourse," the buyer takes on the full risk if the borrower fails to pay. Similarly, in certain sales agreements or check endorsements, "without recourse" means the endorser isn't liable if payment isn't made. This contrasts with "with recourse" agreements, where the seller or endorser can still be held responsible if the borrower doesn't fulfill their obligation.