Which term describes the voluntary relinquishment of a known legal right?

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

Answer: (D)

Voluntarily relinquishing a known legal right is called a waiver. It means a person consciously gives up a claim or entitlement they could otherwise enforce. In practice, a waiver occurs when someone agrees to give up a right (for example, accepting terms that waive a future claim or suing on a particular issue) or simply acts in a way that demonstrates that relinquishment.

Indemnity is about protection against loss through compensation for damages, not about giving up a right. Reimbursement refers to paying back costs already incurred, not surrendering a right. Estoppel is a principle that prevents someone from asserting a claim because of their own previous actions or statements that another person relied on; it doesn’t describe a deliberate surrender of a right.