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Contract Glossary

Waiver

Definition

A waiver is when you give up a right you're entitled to. In contracts, the important thing is the non-waiver clause — it says that letting something slide once doesn't mean you can't enforce it next time.

In Practice

Your client pays late every month for 6 months. You don't complain. On month 7, you send a formal notice demanding on-time payment with a late fee. Without a non-waiver clause, they could argue you've waived your right to enforce the payment deadline by consistently accepting late payments. A non-waiver clause shuts down that argument: 'Failure to enforce any provision shall not constitute a waiver of the right to enforce it in the future.' If you do want to formally waive a right — say, agreeing to skip a deliverable deadline for a particular milestone — do it in writing, specify exactly what you're waiving, and confirm the rest of the contract remains in full effect. A quick email saying 'we're waiving the March 15 deadline for Phase 1 only' is far safer than a vague verbal agreement that could be interpreted as waiving all future deadlines.

Example Clause

The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's right to enforce that provision or any other provision in the future. No waiver shall be effective unless made in writing and signed by the waiving Party. A waiver of any breach shall not constitute a waiver of any subsequent breach of the same or any other provision.

Frequently asked questions about waiver

Without a non-waiver clause, it might. Courts can interpret consistent acceptance of late payments as a modification of the contract's payment terms. With a non-waiver clause, you're protected — each instance of leniency is just that, and doesn't change the contract. This is the single best reason to include a non-waiver clause.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.