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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.'

Common in these contract types

ServicesLeaseEmploymentNDAPartnership

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.