What is a 'Waiver'

A waiver is 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.


A waiver is a written demonstration of a party’s intent to relinquish a legal right or claim. The relinquishment is voluntary, and can apply to a variety of legal situations.

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 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.

Waiving of Parental Rights

In cases involving the custody of a child, a biological parent may choose to waive his legal rights as a parent, making him ineligible to make determinations regarding the child's upbringing. This also allows a guardian who is not a biological parent to attempt to assert his right over a child through actions such as adoption.

Waivers of Liability

Before participating in an activity that could lead to injury or death, a person may be required to sign a waiver as a form of expressed consent to the risks that exist due to the inherent nature of the activity. This waiver would release the company facilitating the activity from liability should the participant be injured or killed during his participation. Such waivers may be used prior to participating in extreme sports, such as BMX racing, or other activities, such as sky diving.

Waivers and Tangible Goods

In the case of most tangible goods or personal property, a person may waive the right to continue to make a claim on the item. This can apply to goods that are sold to a new buyer or donated to a particular entity. A transfer of vehicle ownership functions as a waiver of any claim to the item by the seller, and it gives the right to the buyer as the new owner.

Waiver for Grounds of Inadmissibility

If a person who is not a citizen of the United States wishes to gain entry, he may be required to complete Form I-601, Application for Waiver of Grounds of Inadmissibility. This waiver seeks to change the status of the person seeking entry, allowing him the ability to enter the United States legally.

  1. Waiver Of Premium For Payer Benefit ...

    A waiver of premium for payer benefit clause says that an insurance ...
  2. Collision Damage Waiver (CDW)

    Collision damage waiver (CDW) is additional insurance coverage ...
  3. Waiver Of Subrogation

    Waiver of subrogation is a contractual provision that prohibits ...
  4. Waiver Of Restoration Premium

    A clause in an insurance policy that says that the insurance ...
  5. Joint Bond

    A bond that is guaranteed by a party other than the issuer. A ...
  6. Covenant Not To Sue

    Covenant not to sue is a legal agreement in which the party seeking ...
Related Articles
  1. Investing

    ETF Gross vs. Net Expense Ratios: How They Differ

    If you're going to invest in ETFs, you should know the intricacies of expense ratios.
  2. Managing Wealth

    3 Steps To Take If You Miss Your RMD Deadline

    If you fail to take the required minimum distribution from your retirement account, you need to take the appropriate steps.
  3. Retirement

    Important Changes If You Miss a IRA or Other Rollover Deadline

    A non-qualified distribution might still be tax and/or penalty free under certain conditions.
  4. Investing

    IRS Cuts Some Savers a Break on IRA/401(k) Rollovers

    The Internal Revenue Service is providing some relief to certain taxpayers who may have missed the 60-day window allowed for IRA and 401(k) rollovers.
  5. Managing Wealth

    This Is When You Should Pay Car Rental Fees

    Rental firms are fee-happy, so you’ll be pressured into all sorts of extras when you pick up your car. Decide in advance which options make sense for you.
  6. Small Business

    Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.
  7. Personal Finance

    Best Checking Accounts For Couples

    Being a couple, especially if you both have jobs, can help you qualify for benefits and fee waivers that would be tougher to get on just one salary.
  8. Insurance

    The Facts About Rental Car Insurance

    Find out if the extra insurance is really worth it.
  9. Investing

    13 Pre-Issue Corporate Bond Questions For Businesses

    When a company needs more funding, there are many options. Corporate bonds is just one of them.
  10. Personal Finance

    Taxing Times For Divorced Parents

    Find out how to deal with the tax issues that arise for divorced parents with dependent children.
  1. Can you ask your landlord to remove a waiver of subrogation clause from your lease?

    Learn how to remove a waiver of subrogation clause from a lease. Find out also why you might not want to strike this clause ... Read Answer >>
  2. How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact ... Read Answer >>
  3. How do you make working capital adjustments in transfer pricing?

    Understand how working capital adjustments are applicable to transfer pricing. Learn about the arm's length standard and ... Read Answer >>
  4. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
Trading Center