What is the term for when someone voluntarily gives up the right to sue another party?

The term that refers to the voluntary relinquishment of a right to sue another party is known as a waiver. A waiver occurs when an individual intentionally surrenders a legal claim or right, which can be done explicitly through a written document or implicitly through actions that suggest they are forgoing the right to take legal action.

Understanding the context of waivers is important, especially in the realm of liability and risk management. For instance, in many contracts, such as those related to activities that carry risks (like sports or adventure activities), participants often sign waivers to acknowledge that they understand the risks involved and agree not to hold the organizers responsible in case of injuries. This legal tool helps protect parties by limiting potential liabilities.

In contrast, the other terms have different meanings: subrogation involves one party stepping into the shoes of another to claim compensation; negotiation is the process of discussing terms to reach an agreement; and indemnity refers to security or protection against financial loss or liability. Each term plays a unique role in legal contexts, but only a waiver specifically denotes the act of giving up the right to sue.