Waiver of statutory provisions: Overview, definition, and example
What is a waiver of statutory provisions?
A waiver of statutory provisions refers to the voluntary relinquishment or surrender of a legal right or provision that is granted by statute or law. In certain situations, parties to a contract or agreement may agree to waive certain rights or obligations that are typically mandated by law. This waiver must be done knowingly and voluntarily, and it typically requires the agreement of both parties involved. For example, a business might waive its right to a particular statutory remedy, such as the right to seek damages for a minor breach, as part of a settlement or negotiation.
In simpler terms, a waiver of statutory provisions means that a party gives up or chooses not to enforce certain legal rights or obligations that would normally apply under the law.
Why is a waiver of statutory provisions important?
A waiver of statutory provisions is important because it allows parties to negotiate the terms of an agreement that are more flexible or tailored to their specific situation, even if those terms deviate from standard legal requirements. This flexibility can be beneficial in resolving disputes, simplifying business relationships, or customizing contracts to suit unique needs. However, it is essential that waivers are made carefully and with full understanding of the potential consequences, as they may limit legal recourse or the ability to enforce certain rights in the future.
For SMB owners, understanding when and how to waive statutory provisions can help manage risks, streamline contracts, and create more flexible agreements with other parties.
Understanding waiver of statutory provisions through an example
Imagine your business enters into a contract with a supplier. The law provides that a supplier must offer a 30-day return policy on faulty goods. However, you and the supplier agree that, for your specific transaction, returns will not be accepted after 10 days. By signing the contract with this term, you are effectively waiving the statutory 30-day return provision that is typically required by law.
In this case, the waiver of statutory provisions allows both parties to agree to a different, mutually beneficial return policy, even though it is shorter than what is mandated by statute.
Example of a waiver of statutory provisions clause
Here’s an example of what a waiver of statutory provisions clause might look like in a contract:
“The Parties hereby agree to waive any and all statutory provisions relating to [specific provision], including but not limited to [specific law or regulation]. The Parties further agree that this waiver is made voluntarily and with full knowledge of the legal implications.”
Conclusion
A waiver of statutory provisions is a legal mechanism that allows parties to voluntarily relinquish certain legal rights or obligations that are typically granted by law. For SMB owners, understanding the role of waivers in contracts can provide more flexibility and help customize agreements to suit specific business needs. However, it is crucial to approach waivers carefully, as they can limit your legal options or rights in the future. By clearly outlining and agreeing to waivers, businesses can manage risks and create tailored contracts that work for all parties involved.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.