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 South Carolina, a waiver of contract rights occurs when a party intentionally relinquishes a known right or conducts itself in such a manner that would lead a reasonable person to believe that right has been relinquished. This is consistent with the general principle that waivers must be made knowingly and voluntarily. South Carolina courts will look at the totality of the circumstances to determine if a waiver has occurred, including the party's conduct and the presence of a non-waiver clause in the contract. Non-waiver provisions are designed to protect parties from inadvertently waiving their rights through inaction or silence, and they are enforceable under South Carolina law. However, even with a non-waiver clause, a party can still intentionally and explicitly waive its rights. It's important for parties to be clear and explicit about their intentions regarding waivers to avoid any potential disputes. As with any legal matter, consulting with an attorney for specific situations is advisable to ensure proper understanding and application of the law.