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 the other party to believe that right has been relinquished. This can be done either expressly, through clear language, or impliedly, through actions or conduct. For a waiver to be valid, it must be made voluntarily and with full knowledge of the rights being waived. South Carolina courts will generally uphold waivers that meet these criteria. Additionally, contracts in South Carolina often include non-waiver clauses which specify that the failure to enforce a right does not amount to a waiver of that right or any future rights. These clauses are designed to protect parties from inadvertently waiving their rights through inaction or leniency. Such provisions are enforceable in South Carolina, provided they are clearly stated in the contract and are consistent with the intentions of the parties.