Waiver of default
A waiver of default is a lender's or contracting party's agreement not to enforce its remedies for a particular default, such as a missed payment or a breached loan covenant. It is common in lending, where a lender may waive a covenant breach, often for a fee or on conditions, while keeping its rights for any future default.
How BC law treats it
A waiver of default is governed by the contract and common law; loan agreements usually require waivers to be in writing and signed by the lender. In litigation, there is no recognized waiver of default instrument; parties may agree to extend time to respond, and default judgment is governed by Rule 3-8 of the Supreme Court Civil Rules.
What it means for your business
If you breach a loan covenant, ask the lender for a written waiver rather than relying on informal assurances.
Risks and common mistakes
An oral assurance from a lender may not prevent the lender from later enforcing its security.
For the full explanation, see our entry on Waiver.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
