The term sans recours is a French phrase that translates to "without recourse." In legal contexts, it indicates that the endorser of a financial instrument, such as a bill or note, is not liable for its payment. This means that if the bill is not paid, the endorser cannot be held responsible for covering the amount owed. This term is often used in financial transactions to clarify the responsibilities of parties involved.
Sans recours is primarily used in financial and commercial law. It is relevant in situations involving negotiable instruments, such as checks or promissory notes. When a person endorses a bill sans recours, they are effectively stating that they will not assume liability if the bill is not honored. This term is particularly important in transactions where risk management is a concern, allowing parties to limit their financial exposure.
Here are a couple of examples of abatement:
Example 1: A business owner endorses a check to a supplier with the notation "sans recours." If the check bounces, the supplier cannot seek payment from the business owner.
Example 2: An individual endorses a promissory note for a friend, specifying "sans recours." If the friend fails to repay the loan, the individual is not responsible for the debt. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Generally recognizes sans recours endorsements but may have specific requirements for commercial transactions. |
| New York | Commonly used in financial agreements, with established case law supporting the enforceability of such endorsements. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| With Recourse | The endorser is liable for payment if the bill is not honored. | Contrasts with sans recours, where no liability exists. |
| Endorsement | A signature or statement on a financial instrument transferring rights. | Endorsements can be with or without recourse. |
If you are considering endorsing a financial instrument sans recours, it is essential to understand the implications. Ensure that the endorsement is clearly stated on the document. If you have concerns about liability or the transaction's legality, consider consulting a legal professional. Additionally, users can explore US Legal Forms' ready-to-use legal form templates for assistance in drafting endorsements or other related documents.
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It means "without recourse," indicating that the endorser is not liable for payment of the bill.