The Doctrine of Waiver
- By Ananya Parthasarathy
- Articles
Introduction
A waiver is essentially the intentional relinquishment of a legal right or claim. In the Indian legal context, this doctrine finds application across contract law, constitutional law, testamentary law, and various other fields. In these fields, individuals may, expressly or by conduct, with full knowledge of their existing rights, choose to abandon said right/rights.
Courts view this doctrine as a matter of personal autonomy, provided it is entirely understood and voluntary, because they hold that the law exists to protect individual rights and fundamental freedoms, but they also respect an individual’s liberty to let go of a right or legal claim.
This article delves into the historical and conceptual roots of the doctrine, its core principle and statutory framework, its application, judicial interpretations, and contemporary relevance, especially in Indian law.
Historical Origins and Evolution
The Doctrine of Waiver originated in English common law, where it evolved from principles of equity that allowed contracting parties to forego their rights in favour of justice or a better outcome or more consensual behaviour. Courts eventually realised that it would be unfair to permit a party to enforce a right they had already foregone, consciously and either by conduct or expressly, especially if the other party had relied and acted on the relinquishment of that right.
In the law of contracts, this doctrine developed alongside rules like promissory estoppel, which prevents a party from resiling from a promise made to the other party if they have relied on it and it would be detrimental to their cause if the promise is not kept. In Indian law, the Doctrine of Waiver is not a codified principle, but its application has mainly been through judgments which have been binding precedents. The essence of this principle aligns closely with the constitutional values of justice and dealing in good faith.
Core Principle of the Doctrine
The Doctrine of Waiver is predicated on the idea that somebody intentionally surrenders their legal right/rights by words or conduct with full knowledge of their existence and function. Unlike a contractual agreement, this waiver does not mandate accompaniment by consideration. It is not the same as losing a right due to limitation or forfeiture; it is a conscious choice to give up on exercising the right.
Key Elements of Waiver:
- Knowledge of the Right:
The person waiving the right must be fully and consciously aware of the existence of that right in the first place. It is an established norm in law that an individual cannot be said to have voluntarily relinquished, abandoned, or given up the usage or exercise of a legal right unless he/she/they possess a clear and unequivocal understanding that they are actually legally entitled to such a provision. For a waiver to be valid and binding, it has to be an informed and consensual act, and not an ignorant one made in uncertainty or absence of knowledge of the right being surrendered. - Intentional Relinquishment:
The act of waiver must be entirely voluntary, free from coercion, compulsion, or misunderstanding. The right must be forfeited deliberately and consciously by the person willing to do this. To determine whether or not a waiver has taken place, courts meticulously assess the conduct of the individual to discern whether or not it undoubtedly reflects an intention to refrain from asserting or enforcing that legal right. - No Necessity for Consideration:
In contrast to the law of contracts, where the existence of mutual consideration or quid pro quo is a fundamental necessity, the doctrine of waiver operates independently and does not demand the exchange of any reciprocal benefit or obligation, which is called ‘consideration’. A waiver is valid even in the complete absence of a corresponding promise or benefit from the other party. - Can Be Express or Implied:
A waiver may manifest in various forms — it may be expressly articulated through written documentation, conveyed verbally through spoken word, or implied through a consistent course of conduct and behaviour that obviously indicates the individual’s deliberate intention to renounce or abandon the legal right in question.
Statutory Framework
While the doctrine is not formally codified in any single statute in India, it is implied and recognised under several legal frameworks.
- Indian Contract Act, 1872
Section 62 of the Indian Contract Act, 1872 reads as follows: “Effect of novation, rescission, and alteration of contract.- If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed.”
This provision allows parties to relinquish their contractual obligations towards each other for that specific contract, provided they have mutually consented to the same.
Suppose person A owes person B 10,000 rupees. A enters into an agreement with B, and B gives a mortgage of A’s estate for 5,000 rupees instead of the 10,000 rupee debt. This new contract extinguishes the old contract. Parties mutually waived off their rights and obligations pertaining to the debt and have new obligations and rights pertaining to the mortgaged estate.
Similarly, in section 63, which reads “Every promisee may dispense with or remit, wholly in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit”, there is inherent entitlement to forego certain rights and obligations to the extent of your own choice.
Section 64 also permits a “waiver” of sorts as it applies in cases of fraud, misrepresentation, coercion, undue influence, or mistake, where one party has the option to rescind the contract. In simple terms, this section dictates that if one party rescinds a contract that is voidable at their option, then the other party is also no longer required to perform their obligations. However, the person who rescinded must return or compensate for any benefit by way of money, property, or service that they received under the contract, as far as possible. The contract is then declared void.
- Evidence Act and Estoppel
Section 115 of the Indian Evidence Act, 1872, and Section 121 of the now Bharatiya Sakshya Adhiniyam, 2023, explains the concept of “Estoppel”. Though technically distinct, the principle of estoppel overlaps with waiver.
This section provides that when one person has, by his declaration, act, or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he or his representative shall be allowed, in any suit or proceeding between himself and such person or his representative, to deny the truth of that thing.
This is only to say that if person A induces person B into believing something to be true, through express words or intent or by conduct, and B relies on that belief and acts on it, then A (or A’s legal representative) cannot later deny it, should a legal dispute between A and B occur. The first party is estopped from going back on their word.
This doctrine also found applicability in contexts such as civil procedure, where procedural rights like jurisdictional objections may be waived, and succession matters, where a beneficiary may voluntarily decline their share under a will, either in another’s favour or entirely, thereby effecting a waiver.
Judicial Precedents
Through various decisions, courts balance the freedom to waive against the need to protect public rights and prevent abuse.
- Inderpreet Singh Kahlon v. State of Punjab, (2006)
The Supreme Court outlined the parameters of the doctrine of waiver in this case. The court held that a waiver occurs when an individual voluntarily and knowingly gives up a legal right, either by express declaration or by actions that make it obvious that they intend to do so. The Court underlined that a waiver must be deliberate and unambiguous, and the person making the waiver must be fully aware of the right being relinquished. Importantly, the Court ruled that waiver is effective solely based on voluntary action and does not require consideration.
The ruling went on to clarify that, under certain circumstances, an implied waiver may be deduced from inaction or behaviour that contradicts the assertion of the right. To avoid injustice or abuse of process, courts must carefully examine the facts and evidence, including any written or verbal communications, to ascertain whether the waiver was sincere, fair, and informed. This case thus reaffirms that waiver is a purposeful act that is subject to judicial oversight to ensure equity rather than a casual abandonment.
- Kammin’s Ballrooms Co. Ltd. v. Zenith Investments (Torquay) Ltd.
This case explains the doctrine of waiver as “Waiver is an abandonment of a right in such a way that the other party is entitled to plead the abandonment by way of confession and avoidance if the right is thereafter asserted, and is either express or implied from conduct. It may sometimes resemble a form of election, and sometimes be based on ordinary principles of estoppel.”
This means that a legal right can be voluntarily and consciously given up in such a way that the other party can rely on it if the right is later asserted. Sometimes, it is akin to making a choice (like an election), and sometimes, this doctrine works on estoppel, meaning the party cannot go back on their word once they have relinquished their right and made the other party believe so if the other party acts on that reliance.
- Central London Property Trust Ltd. v. High Trees House Ltd.(The “High Trees” case)
Although an English case, it establishes that a waiver must be an intentional relinquishment of a known right. The court observed that when one party makes promises or assurances to another party that are intended to affect their legal relationship, then the party concerned cannot alter their position or revert to their previous, unchanged legal relationship as if no promise or assurance had been given. Now, the concerned party must accept the relationship for what it is, subject to the terms and conditions introduced by them, even though it has no lawful backing by way of consideration, unlike a proper contract.
Status Quo in the Indian Legal System
Today, Indian courts treat waiver as a matter of personal liberty and fairness. Parties are allowed to forgo their rights if they do so voluntarily and with full knowledge. However, courts are careful to ensure that the waiver:
- It is not presumed from mere silence,
- Does not arise where statutory or public rights are involved (e.g., tax laws, fundamental rights),
- Does not negatively affect third parties, and
- It is not contrary to public policy.
In the constitutional context, waiver of fundamental rights is not permitted. For instance, Article 21 (Right to Life) cannot be waived, as it is intrinsic to human dignity and public interest.
Distinction from Related Doctrines
- Waiver vs. Estoppel:
- Waiver is based on intentional relinquishment.
- Estoppel is based on representation and reliance.
- Waiver is based on intentional relinquishment.
- Waiver vs. Election:
- Waiver involves abandoning a single right.
- Election involves choosing between two mutually exclusive rights.
- Waiver involves abandoning a single right.
- Waiver vs. Acquiescence:
- Acquiescence is passive acceptance through silence or inaction.
- Waiver is active and conscious, often with express or implied acts.
- Acquiescence is passive acceptance through silence or inaction.
Opinion and Suggestions
The Doctrine of Waiver is a crucial judicial tool to uphold autonomy, consent, and fairness in private law. However, greater clarity and codification could improve its accessibility and application.
- Codification:
A standalone statutory provision (similar to “Waiver of Rights” clauses in modern contracts) could prevent litigation and make the doctrine more user-friendly. - Judicial Clarity:
Courts should standardise the tests for determining waiver—particularly for implied waiver—to prevent arbitrary inferences. - Awareness Among Legal Draftspersons:
Lawyers and testators should be trained to use clear language indicating whether rights can or cannot be waived, to reduce ambiguity in litigation. - Protection of Vulnerable Parties:
Courts must scrutinise waivers obtained through undue influence or lack of awareness, especially in succession and family law matters.
Conclusion
This doctrine is a subtle but powerful idea that highlights the Indian legal system’s dedication to both individual liberty and fair justice. Although it gives people the ability to modify their rights and responsibilities to meet their own needs, it also requires that these decisions be made sensibly and thoughtfully.
Indian courts have become increasingly adept at striking this balance, making sure that waivers act as a safeguard against injustice rather than as a means of exploitation or evasion. The doctrine will continue to be crucial in determining just outcomes as legal literacy rises and contractual relationships change, especially in situations where actions speak louder than words and written language is inadequate.