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 Idaho, as in many states, a waiver of contract rights must be a voluntary and knowing relinquishment of a right, benefit, or advantage that a party is entitled to under a contract. This means that the party waiving the right must do so with full awareness of the right in question and the consequences of waiving it. Idaho courts will generally uphold waivers that meet these criteria, provided they do not violate public policy or statutory provisions. Additionally, Idaho recognizes non-waiver clauses in contracts, which specify that the failure to enforce or exercise rights or remedies does not constitute a waiver of those rights at any future time. Such clauses are designed to prevent inadvertent waivers of rights through a party's inaction or silence and are commonly found in various types of contracts, including insurance and commercial agreements. It is important for parties to a contract to understand the implications of these provisions and to act intentionally when it comes to enforcing or waiving their contractual rights.