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 Arkansas, a waiver of contract rights must be made knowingly and voluntarily, which means the party waiving the rights must do so with full awareness and intention. This principle is consistent with general contract law principles that require a waiver to be clear and unequivocal. Arkansas courts will typically uphold waivers if they meet these standards. Additionally, contracts in Arkansas often include non-waiver clauses that specify the failure to enforce a right or provision does not amount to a waiver of that right or any future rights. These clauses are designed to protect parties from inadvertently losing their contract rights through inaction or forbearance. Such non-waiver provisions are enforceable in Arkansas, provided they are part of the original contract and are consistent with the intent of the parties. This is particularly relevant in insurance and commercial contracts where the stakes of waiving a right can be significant.