Letter of Waiver

The Waiver Letter or Waiver Agreement is a document that confirms that a party has surrendered or waived their rights. This document is used when a party decides to give up their rights or claim to relieve the other party from liability. For example, a party to a contract may surrender its right to claim damages under a legally binding contract.

This document can be used for various situations, however, it has provided some forms of waiver which include:

• Waiver of right to the required notice of meeting of a company: Companies occasionally hold meetings, and the law requires that these meetings may not be valid except the company secretary circulates notice of meeting at least 21 days before the meeting, except the members agree to a shorter notice. Therefore, if a company convenes a meeting without the required 21 days' notice or shorter notice (as agreed by the members), such a meeting will be invalidated. Consequently, members of a company can use this letter to waive their right to the 21 days required notice, thus relieving the company from any liability. This means that by issuing this letter, the Members agree to a shorter notice period.

• Waiver of preemptive rights of the members of a company: Ordinarily, members of a company may be entitled to the right of preemption which is the right to be offered shares first before the same is transferred or sold to a non-member. However, one or more of the members of a company may choose to waive such right. This document enables the members of a company to waive such right of preemption.

• Waiver of right to sue or claim damages: This is a form of waiver wherein one party voluntarily surrenders its right or privilege to sue or claim damages. This only applies to civil actions and not criminal matters because crimes are prosecuted by the State or Federal Government. This can apply in several situations, such as waiving a right to sue in the event of personal injury, accident, property damage, repayment of loans etc. This is a form of an agreement.

Note that once a party has consented to waive its right voluntarily, such a party can no longer claim that right.

How to use this document

This document can be used for a party that intends to waive or forgo their rights. After filling out this form, the sender of this document must sign and send the same to the recipient. If the sender of this document is a company, either 2 (two) directors or 1 (one) director and 1 (one) company secretary will sign the document on behalf of the company. Both parties should keep at least one copy each for record purposes.

Applicable laws

The Companies and Allied Matters Act, 2020 applies to waiver of notice of meeting and preemptive rights of the members of a company. The general rules of contract also apply to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.