Waiver CASES
In English law, a waiver refers to the intentional and voluntary relinquishment of a known right or claim, typically within a contractual context.
Definition and Principles
A waiver arises when a party consciously chooses not to enforce a particular legal right or obligation, indicating that compliance is no longer required, either explicitly or implicitly through conduct.
Legal Consequences
Once a right has been waived, it cannot typically be reclaimed. Clear communication or consistent behaviour is essential to establish waiver.
Practical Importance
Understanding waivers helps parties manage rights effectively and prevents unintended losses or disputes through clear communication.
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Coffee sellers accepted payment via a letter of credit in Sterling, despite the contract currency being Kenyan shillings. After Sterling was devalued, they claimed the shortfall. The court held they had permanently waived their right to the original currency by their conduct. Facts The sellers, W.J. Alan & Co. Ltd., contracted to sell coffee to the buyers, El Nasr Export & Import Co., an Egyptian state corporation. Two contracts from May 1967 stipulated the price as “Shs.262/-” per hundredweight (cwt), which was denominated in Kenyan shillings. Payment was to be made via an irrevocable letter of credit. The buyers opened
A patent holder agreed to suspend compensation payments from a licensee during the war. After the war, they sought to resume payments. The House of Lords held their promise was terminable by giving reasonable notice, confirming promissory estoppel suspends, not extinguishes, rights. Facts In 1938, the appellants (Tool Metal Manufacturing Co Ltd, ‘TMM’) granted the respondents (Tungsten Electric Co Ltd, ‘TECO’) a licence to import, make, use, and sell hard metal alloys protected by TMM’s patents. The agreement stipulated that if TECO’s monthly sales exceeded a specified quota, they were required to pay ‘compensation’ to TMM. Following the outbreak of
A landlord gave a tenant six months' notice to repair a property. During this period, the parties entered negotiations to sell the lease. The House of Lords held the negotiation period suspended the notice, establishing an early form of promissory estoppel. Facts In 1845, a lease was granted for premises at 21, 22, and 23 Euston Road, containing a covenant for the lessee to keep the premises in good repair. The appellant, Mr Hughes, was the lessor and the respondent, The Metropolitan Railway Company, was the lessee. On 22 October 1874, the lessor served the lessee with a notice to
A buyer ordered a car body for delivery by a specific date. After waiving late delivery by continuing to press for it, the buyer gave the seller a final, reasonable deadline. The court held this notice made time of the essence again, so the buyer could validly refuse delivery when this new deadline was missed. Facts In 1947, the defendant, Mr Oppenhaim, placed an order with the plaintiffs, Charles Richards Ld, for a Rolls-Royce chassis and a custom-built body. The contract initially stipulated that the completed vehicle was to be delivered ‘on or about March 20, 1948’, and time was
A landlord promised to accept reduced rent during WWII due to low occupancy. Although this promise lacked consideration, the court held it was temporarily binding. The case established the modern doctrine of promissory estoppel, preventing a promisor from unenforceably reverting to strict legal rights. Facts In 1937, the plaintiff, Central London Property Trust Ltd., let a block of flats in London to the defendant, High Trees House Ltd., on a 99-year lease at a ground rent of £2,500 per annum. Following the outbreak of the Second World War and the resulting difficulty in letting the flats, the parties made an
