Waiver

A waiver is a formal decision made by a party to renounce enforcing a particular requirement, condition, or right that is outlined in a contract or agreement. In short, it is an agreement to overlook a specific contract temporarily or permanently.

For instance, in the context of a loan agreement, a lender may choose to waive a late fee if the borrower has a valid reason for missing a payment deadline.

Waivers are often documented to ensure clarity and understanding between the parties involved. They can be beneficial for fostering goodwill, resolving disputes, or accommodating unique circumstances.