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Uses, Examples, and Types
By AKHILESH GANTI Updated August 31, 2023
Reviewed by ERIC ESTEVEZ
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What Is a Waiver?
A waiver is a legally binding provision where either party in a contract agrees to voluntarily forfeit a claim without the other party being liable. Waivers are commonly seen during settlement talks, when one party may be willing to pay out a slightly higher award, as long as the other person, often a claimant, agrees to sign a waiver relinquishing their right to further legal action.
KEY TAKEAWAYS
A waiver is a legally binding provision where either party in a contract agrees to voluntarily forfeit a claim without the other party being liable.
Waivers can either be in written form or some form of action.
Examples of waivers include the waiving of parental rights, waiving liability, tangible goods waivers, and waivers for grounds of inadmissibility.
Waivers are common when finalizing lawsuits, as one party does not want the other pursuing them after a settlement is transferred.
Waivers are signed in order to mitigate exposure to risk.
Understanding Waivers
A waiver is a demonstration, usually in written form, of a party’s intent to relinquish a legal right or claim. The key point to note is that the relinquishment is voluntary, and can apply to a variety of legal situations.
Essentially, a waiver removes a real or potential liability for the other party in the agreement. For example, in a settlement between two parties, one party might, by means of a waiver, relinquish its right to pursue any further legal action once the settlement is finalized.
Since the party signing the waiver is surrendering a claim that they are entitled to, it stands to reason that they will, usually, only do so if they are receiving some added benefit.
Waivers can either be in written form or some form of action. A waiver carried out by an action might be based on whether a party in an agreement acts on a right, such as the right to terminate the deal in the first year of the contract. If it does not terminate the deal, which would be the act of "absence of action," before the first year, that party waives its right to do so in the future.
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