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 Nebraska, a waiver of contract is recognized when a party intentionally relinquishes a known right or conducts itself in such a manner that would indicate the abandonment of a right, or acts inconsistently with the assertion of that right. The waiver must be voluntary and made with the full knowledge of the rights being waived. This is in line with the general principle of 'knowing and voluntary relinquishment of rights.' Non-waiver clauses are often included in contracts to clarify that the failure to enforce a right or provision does not imply that a party has waived their right to do so in the future. These clauses help to protect parties from inadvertently losing their rights through inaction or leniency. Nebraska courts will generally enforce non-waiver provisions as long as they are clearly stated within the contract. This is particularly relevant in insurance and commercial contracts, where such provisions help to maintain the integrity of the contractual terms over time.