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 Colorado, as in many 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 and understanding of the rights they are giving up. The waiver can be expressed through clear language in the contract or implied by conduct that indicates an intention to waive the rights. Colorado courts will generally uphold waivers that are explicitly stated in a contract and 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 are enforceable in Colorado and help prevent unintended waivers through inaction or forbearance. It is important for parties to a contract to understand the implications of waivers and non-waiver provisions to ensure their rights are protected.