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 North Carolina, 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 intention. The courts in North Carolina will generally uphold waivers if they are clear and unambiguous, and if they demonstrate that the waiving party intended to forgo the rights in question. Additionally, contracts in North Carolina often include non-waiver clauses which specify that the failure to enforce or exercise any rights or provisions of the contract does not constitute a waiver of those rights. Such clauses are designed to protect parties from inadvertently losing their rights due to inaction or oversight. These non-waiver provisions are enforceable as long as they are consistent with the intent of the parties and the purpose of the contract. It is important for parties to a contract to understand the implications of these provisions and to act accordingly to preserve their contractual rights.