What term describes the action of relinquishing rights within a contract?

The term that describes the action of relinquishing rights within a contract is "waiver." A waiver occurs when a party voluntarily gives up or relinquishes a known right, claim, or privilege. This can happen either explicitly, through clear statements or actions, or implicitly, through behavior that suggests the party is choosing to forgo that right.

In contracts, waivers are essential because they can impact how obligations under the contract are enforced. For example, if a party to a contract fails to enforce a provision of the agreement in a timely manner, they may be seen as having waived their right to enforce that provision in the future.

Understanding waiver is vital for both parties to a contract, as it highlights the importance of taking action to protect rights and ensures that both parties are aware of any changes in their contractual obligations.