MBE Rules · Contracts
Waiver of Conditions
Waiver and estoppel of conditions
The rule
A party may waive a condition inserted for its benefit; waivers of material conditions supported by no consideration may be retracted before the other party's detrimental reliance.
In plain English
A party can choose to give up a condition that was included in a contract for their own benefit. However, if the waiver is significant and not backed by any consideration, the party can take back the waiver as long as the other party hasn't already relied on it to their detriment.
Worked example
Alice's contract with Bob includes a condition that Bob must deliver the goods by a certain date for Alice to pay. Bob tells Alice he waives this condition, but before Alice relies on this waiver and takes any action, Bob decides to retract it. Since Alice hasn't relied on the waiver yet, Bob can still enforce the original delivery date.
Memory hook
Waivers can be retracted until someone acts on them.
The trap
Exams may present scenarios where a party thinks they have waived a condition, but students might overlook whether the other party has relied on that waiver.
How examiners test it
Questions often involve a fact pattern where one party waives a condition, and students must determine if the waiver can be retracted based on reliance.
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