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 Wyoming, as in other jurisdictions, a waiver of contract refers to the voluntary and intentional relinquishment of a known right or benefit under the contract. For a waiver to be effective, it must be made with full knowledge of the rights being waived. This principle ensures that parties are not deemed to have waived their rights inadvertently or without a full understanding of the consequences. Contracts in Wyoming often include non-waiver clauses to explicitly state that the failure to enforce a right or provision does not amount to a waiver of that right or any future rights under the contract. These clauses are designed to protect parties from unintentionally losing their contract rights due to inaction or oversight. Non-waiver provisions are particularly prevalent in insurance and commercial contracts to maintain the integrity of the contractual terms over the life of the agreement. Wyoming courts generally uphold such provisions as long as they are clearly stated within the contract and the waiver, if any, is made knowingly and voluntarily.