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 Michigan, a waiver of contract rights occurs when a party intentionally relinquishes a known right or conducts itself in a manner that is inconsistent with the right's enforcement. Under Michigan law, waivers must be made knowingly and voluntarily to be effective. This means that the party waiving the right must have full knowledge of the right and the intention to relinquish it. Non-waiver clauses are frequently included in contracts to clarify that the failure to enforce a right does not imply that the right is permanently waived. These clauses help to protect parties from inadvertently losing their rights due to inaction or leniency in enforcing the contract at any given time. Such provisions are enforceable in Michigan, provided they are clearly stated in the contract and do not contravene any laws or public policy. It's important to note that the specific enforceability of waivers and non-waiver clauses can depend on the context of the contract and the circumstances under which the waiver occurs.