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waiver

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 Ohio, a waiver of contract is recognized when a party intentionally relinquishes a known right or conducts itself in a manner that is inconsistent with the contract's enforcement. Ohio courts require that a waiver be knowing and voluntary, meaning the party waiving its rights must fully understand the rights in question and the consequences of waiving them. Non-waiver clauses are enforceable in Ohio and serve to protect parties from inadvertently waiving their rights through inaction or failure to enforce a term of the contract immediately. These clauses are particularly common in insurance and commercial contracts, where they help to maintain the contract's integrity over time despite any temporary lapses in enforcement or oversight by one of the parties.

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Civil litigation

waiver

Individual & Family Legal Plan

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Civil litigation

waiver

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