What is the term for the voluntary relinquishment of a known legal right?

• A. Estoppel
• B. Waiver
• C. Reimbursement
• D. Indemnity

Answer: (B)

Waiver is the voluntary relinquishment of a known legal right. The key idea is that someone knowingly gives up a claim or entitlement, either by an explicit statement or by conduct that clearly shows the right will not be enforced. In insurance terms, this can happen when a party agrees to release a right to sue, or when an insurer intentionally gives up its right to pursue subrogation or other enforcement as part of a settlement. This is different from estoppel, which stops a party from asserting a right because of earlier actions or promises that another party relied on; estoppel doesn’t involve the actual surrender of the right itself. Reimbursement and indemnity are about paying costs or compensating losses, not about giving up rights.