A waiver of contract occurs when a party to a contract waives or gives up one or more rights or benefits it has under the terms of the contract. A party generally does not waive its rights unless the waiver is made voluntarily and with knowledge of the rights being waived—known as a “knowing and voluntary relinquishment of rights.”

Contracts often include a non-waiver paragraph or provision stating that a party’s (or the parties’) failure to pursue or exercise certain rights under the contract does not constitute a waiver of those or other rights under the contract. Such non-waiver provisions are common in insurance contracts and other commercial contracts.

In Maine, as in other jurisdictions, a waiver of contract rights must be a knowing and voluntary relinquishment of those rights. This means that the party waiving the rights must do so with full awareness of the rights in question and without coercion. Contractual waivers are often used to excuse a breach or modify an obligation under the contract. Maine courts will generally uphold waivers if they are clear and unambiguous, and if they meet the standard of being made knowingly and voluntarily. Additionally, non-waiver clauses are commonly included in contracts to clarify that the failure to enforce a right or provision does not amount to a waiver of that right or any future rights. Such clauses help to prevent unintended waivers and are enforceable as long as they are consistent with Maine's contract laws. It is important for parties to a contract to understand the implications of waivers and non-waiver provisions, and they may wish to consult with an attorney to ensure their rights and interests are adequately protected.