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 Louisiana, a waiver of contract is recognized when a party intentionally relinquishes a right or benefit that is provided under the terms of a contract. This waiver must be made knowingly and voluntarily, indicating that the party waiving the right is fully aware of the right they are giving up and is choosing to do so freely. Louisiana law, similar to the laws in other states, respects the principle that parties to a contract have the freedom to include non-waiver clauses. These clauses specify that the failure to enforce or exercise certain rights does not amount to a waiver of those rights or any other rights under the contract. Such provisions are designed to prevent inadvertent loss of rights due to inaction or oversight and are particularly common in insurance and commercial contracts. It is important to note that the specific enforceability and interpretation of waiver and non-waiver provisions can be influenced by the precise language of the contract and the circumstances surrounding the waiver.