recourse

Recourse is the ability to obtain redress or enforcement through a legal or formal mechanism when a right is violated or a debt is not paid. In general, recourse refers to the means by which a party can seek remedy from another party, whether through courts, arbitration, administrative processes, or other binding claims.

In legal contexts, recourse commonly involves pursuing damages, specific performance, or injunctions to enforce contractual obligations or to address tortious or unlawful conduct. It may also encompass mechanisms for recovering costs, enforcing judgments, or appealing decisions. The availability and scope of recourse depend on the applicable law, contract terms, and procedural rules, and may include remedies such as compensatory, exemplary, or statutory damages.

In finance, recourse describes a lender’s right to seek repayment from the borrower beyond any collateral. A recourse loan allows the lender to pursue the borrower's other assets if the collateral does not cover the debt. By contrast, non-recourse loans limit the lender’s recovery to the collateral itself, with no claim on the borrower's other assets. Recourse arrangements influence risk, liquidity, interest rates, and the willingness of lenders to finance borrowers.

Regulatory and jurisdictional factors shape recourse rules. Some systems provide broad remedies and easy access to courts, while others impose limitations, provide bankruptcy protections, or require negotiation or alternative dispute resolution. Understanding recourse is essential for assessing liability, remedies, and financial risk in contracts and lending.