Waiver

Waiver

The voluntary action of a person or party that removes that person's or party's right or particular ability in an agreement. The waiver can either be in written form or some form of action. A waiver essentially removes a real or potential liability for the other party in the agreement.

Notes:

For example, in a settlement between two parties, one party might, by means of a waiver, relinquish its right to pursue any further legal action once the settlement is finalized. A waiver carried out by an action, for example, might be based on whether a party in an agreement acts on a right, such as the right to terminate the deal in the first year of the contract. If it does not terminate the deal before the first year, that party waives its right to do so in the future.

See also: Insurance, Obligation, Permanent Life Insurance, Rider, Whole Life Insurance Policy