Contracts & ExecutionQuestion 868 of 1605

A 'waiver' in the context of a contract generally refers to:

a.The voluntary and intentional relinquishment of a known contractual right
b.A mandatory arbitration process
c.A court order enforcing performance
d.A brand-new separate contract

Explanation

A waiver is the voluntary, intentional giving up of a known right under the contract, for example, when a party consistently accepts late payments and thereby relinquishes the right to object to lateness. A waiver can arise expressly or by conduct. It is not itself a new contract, not a court order, and not an arbitration procedure; it simply means a party has chosen to forgo enforcing a particular right it possessed.

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