Recourse
/rɪˈkɔːrs/
Definitions
- (n.) The legal right to demand compensation or payment from a third party if the primary obligor fails to fulfill an obligation.
The lender had recourse against the borrower when the loan was unpaid.
- (n.) The act of turning to someone or something for help or protection.
She sought recourse through the court system to resolve the dispute.
Related terms
See also
Commentary
Recourse is often contrasted with "non-recourse" where no further claims beyond the collateral are possible; clarity in contracts about recourse rights is essential.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.