Waiver of Demand

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Definition of 'Waiver of Demand'

A waiver of demand is a legal document that releases a creditor from the obligation to demand payment from a debtor. This can be useful in situations where the creditor is not sure whether the debtor is still solvent, or if the creditor is willing to accept less than the full amount owed.

There are two main types of waivers of demand: absolute and conditional. An absolute waiver of demand releases the creditor from the obligation to demand payment regardless of the circumstances. A conditional waiver of demand releases the creditor from the obligation to demand payment only if certain conditions are met.

Waivers of demand can be used in a variety of financial transactions, including loans, leases, and sales. They can also be used to settle debts or to release a creditor from liability.

It is important to note that waivers of demand can have significant consequences for both creditors and debtors. Creditors should be careful not to waive their rights without first considering the potential risks. Debtors should also be aware of the implications of signing a waiver of demand, and should only do so if they are confident that they will be able to meet their obligations.

Here are some of the key considerations to keep in mind when drafting or signing a waiver of demand:

* The scope of the waiver: What debts or obligations are being released?
* The conditions of the waiver: What conditions must be met in order for the waiver to be effective?
* The enforceability of the waiver: Will the waiver be upheld in court?

If you have any questions about waivers of demand, it is important to consult with an experienced attorney.

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