Is an electronic waiver enforceable?

Yes, electronic waivers are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided the signature demonstrates intent, consent, attribution, and preserved records.

Notarization depends on state law and the underlying contract; some states or contract provisions require notarization or witnessing for release instruments.

Can a surety refuse a waiver?

A surety may decline to act on a waiver if the waiver affects the surety's rights or obligations; obtain written acknowledgement from the surety when possible.

What if the wrong bond number is listed?

A mismatched bond identifier can render the waiver ineffective for the intended obligation; correct and re-execute the waiver promptly with all parties' assent.

Are remote notarizations acceptable?

Remote online notarization (RON) is permitted in many states with identity proofing and recording requirements; confirm the state's RON status and retention rules before using RON.

How long should I retain waivers?

Retain executed waivers for the contract term plus at least three to seven years depending on industry and state rules; see IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)) guidance where applicable.

Electronic Signature
Templates
Legal
Legal Waiver of Bond

Legal Waiver of Bond

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

LEGAL WAIVER OF BOND

This Legal Waiver of Bond (the "Waiver") is made as of by and between Obligee Name: and Principal Name: (collectively, the "Parties").

RECITALS

WHEREAS, Obligee is a party to or beneficiary of a contract described as Project/Contract: (the "Contract"), pertaining to the following location: ; and

WHEREAS, the Contract either requires or contemplates that Principal obtain a bond identified as Bond Number: issued by Surety Name: in the penal sum of (the "Bond"); and

WHEREAS, the Parties desire to set forth the terms upon which Obligee will waive the requirement to maintain or present the Bond for the Contract under the terms set forth herein.

NOW, THEREFORE

In consideration of the mutual covenants and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Waiver, the following terms shall have the meanings set forth below: "Obligee" means the party identified as Obligee Name: ; "Principal" means the party identified as Principal Name: ; "Surety" means Surety Name: ; and "Bond" means the instrument described above.

2. WAIVER OF BOND

Subject to the terms and conditions set forth in this Waiver, Obligee hereby irrevocably waives the requirement that Principal procure or maintain the Bond for the Contract through the date set forth in Section 6, provided that this Waiver shall apply only to Bond Number: and only to the extent expressly stated herein.

This Waiver is limited to the obligation described in the Contract and shall not be construed as a waiver of any other right or remedy of Obligee under the Contract or applicable law unless expressly stated in a written amendment executed by Obligee.

3. EFFECT ON SURETY

Obligee acknowledges that this Waiver does not, and shall not be deemed to, release or discharge any Surety from its obligations under any existing Bond unless the Surety provides a separate, written release consenting to such discharge. Nothing in this Waiver shall impair, modify, or limit any defenses, claims, rights, or obligations of a Surety unless a Surety's written consent is obtained.

4. REPRESENTATIONS AND WARRANTIES

Principal represents and warrants to Obligee that: (a) Principal has full corporate or legal authority to enter into this Waiver; (b) the execution, delivery and performance of this Waiver will not violate any law, regulation, or other agreement to which Principal is a party; and (c) there are no material claims or defaults under the Contract existing as of the Effective Date except those disclosed in writing to Obligee and described here: .

5. INDEMNITY

To the fullest extent permitted by law, Principal shall indemnify, defend and hold harmless Obligee and its officers, directors, agents and employees from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or resulting from Obligee's reliance upon this Waiver, including but not limited to claims made by a Surety asserting that the waiver has impaired such Surety's rights under the Bond.

6. TERM AND TERMINATION

This Waiver shall be effective as of the Effective Date and shall remain in effect until , unless earlier terminated by mutual written agreement of the Parties. Termination of this Waiver shall not relieve Principal of obligations or liabilities that arose prior to the effective date of termination.

7. NOTICES

Obligee Notice Address Principal Notice Address

All notices and communications required or permitted under this Waiver shall be in writing and shall be deemed delivered upon personal delivery, on the date of confirmed delivery by nationally recognized overnight courier, or three (3) days after deposit in the U.S. mail, postage prepaid, to the addresses set forth above or such other address as a Party may specify by notice in accordance with this Section.

8. GOVERNING LAW

This Waiver shall be governed by and construed in accordance with the laws of the State of without regard to conflicts of law principles.

9. ENTIRE AGREEMENT

This Waiver constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties concerning the subject matter hereof.

10. SEVERABILITY

If any provision of this Waiver or its application to any person or circumstance is held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Waiver and the application of such provision to other persons or circumstances shall not be affected thereby and shall remain in full force and effect.

11. AMENDMENTS AND WAIVER

No amendment, modification or waiver of any provision of this Waiver shall be effective unless in writing and signed by the Parties. No waiver of any breach or default shall constitute a waiver of any other or subsequent breach or default.

12. COUNTERPARTS

This Waiver may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

13. ADDITIONAL PROVISIONS

Additional Terms or Conditions

The Parties acknowledge and agree that each has read this Waiver, understands its terms, and has had the opportunity to seek independent legal counsel prior to execution.

Obligee:

By:

Date:

Principal:

By:

Date:

What a Legal Waiver of Bond Is and when it applies

A Legal Waiver of Bond is a written instrument where a party with a right to require a performance bond or surety agrees to waive that requirement or to release bond proceeds under specified conditions. Typical contexts include construction contracts, court-ordered bonds, and lien or claim settlements where one party agrees not to enforce bond-related rights. The waiver should describe the bonded obligation, the bond identifier, the parties, the waiver scope, and any conditions or consideration exchanged to avoid ambiguity and preserve enforceability under contract and surety law.

Why a Waiver of Bond Matters

A clear waiver of bond clarifies obligations, prevents duplicate claims against bond proceeds, and reduces dispute risk between obligees, principals, and sureties. Properly drafted waivers can accelerate releases, permit partial settlements, and limit exposure for parties relying on bond security.

Typical parties who prepare or receive a waiver

Each party should confirm authority to bind the indemnifying entity and ensure the waiver language aligns with applicable contract, bond, and statutory requirements.

Contractors and Subcontractors who accept payment or settle claims in exchange for releasing bond rights
Project Owners or Developers managing contract closeout and bond release processes
Sureties and Bond Companies administering bond claims, disbursements, or consent to partial releases

Core elements to include in a professional waiver

A well-drafted waiver of bond is concise but specific: it identifies the bond, names all parties, explains the scope of the waiver, includes effective dates, sets consideration, and states any conditions for release.

Bond Identification

Include bond number, issuing surety, and original obligor to avoid misapplication of the waiver to other bonds.

Parties

List the obligee, principal, surety, and any assignees with full legal names and addresses for service.

Scope of Waiver

Specify whether waiver is partial or full, and whether it releases claims, performance obligations, or specific bond proceeds.

Consideration

State the payment, credit, or other consideration provided in exchange for the waiver to satisfy contract formation principles.

Effective Date

Record the effective date and any retroactive or conditional effective provisions controlling when the waiver takes effect.

Signatures and Authority

Include signature blocks, printed names, titles, and a statement of signatory authority to bind the entity granting the waiver.

Step-by-step: how to complete the waiver

Follow these steps to prepare and finalize a Legal Waiver of Bond with accuracy and legal certainty.

01

Gather documents: Collect bond, contract, invoices, and proof of consideration.
02

Fill identification: Complete bond number, surety, obligee, principal, and dates.
03

Describe the waiver: State whether waiver is partial or full and list specific claims waived.
04

Execute and authenticate: Sign, add witness/notary if required, and retain copies for all parties.

Typical processing flow for a waiver of bond

A predictable workflow helps ensure releases are recognized by obligations, sureties, and courts when applicable.

Draft: Prepare the waiver and attach supporting invoices and bond copy.
Review: Legal and surety review for conformity with bond and contract terms.
Execute: Authorized signatures, witness or notarization as required.
Distribute: Provide signed copies to surety, obligee, principal, and retain originals.

Configuring a reliable digital workflow for waivers

Set up fields and routing to minimize manual steps and ensure every stakeholder receives the executed waiver.

Field	Configuration
Bond Number Field	Mandatory text field with validation for alphanumeric values
Party Name Fields	Separate fields for obligee, principal, and surety; require full legal name
Signature Fields	Signer, date, and title fields; optional witness/notary fields
Routing Order	Sequential routing: drafter → legal reviewer → signer(s) → surety

Digital signing considerations and platform needs

For regulated industries, confirm HIPAA, 21 CFR Part 11, or other compliance needs and retain full audit trails for recordkeeping.

Signature Evidence: Timestamp, IP address, and certificate of completion ensure attribution and retention
Authentication: Email, SMS code, or stronger methods reduce identity disputes
Document Formats: PDF and DOCX support preserves layout and embedded metadata

Essential security and compliance items to track

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Timestamped signer events and IP logs

Access Controls: Role-based permissions and SSO/SAML support

HIPAA Support: BAA available where required

21 CFR Part 11: Capabilities for audit and signature timestamps

Data Residency: Options for regional storage and EU-U.S. frameworks

Risks and consequences of an incorrect waiver

Invalid Waiver: Waiver may be unenforceable if signatory lacks authority

Misapplied Release: Wrong bond number can release unrelated obligations

Statutory Noncompliance: State law or contract provisions may void a purported waiver

Financial Exposure: Surety or obligee may pursue claims if waiver is ambiguous

Delay in Disbursement: Insufficient documentation can slow bond proceeds release

Tax/Reporting Impact: Consideration paid may have reporting or withholding consequences

Common preparation mistakes to avoid

Using informal or vague language that fails to identify the bonded obligation precisely
Omitting signatory authority or corporate title and failing to attach proof of authorization
Failing to include or attach the surety bond copy and relevant invoices or settlements
Not verifying state-specific notarization or witness requirements before execution

Timing and processing expectations

Track dates carefully: effective date, payment deadlines tied to consideration, and any bond claim periods that may limit waiver effectiveness.

Effective Date:

Enter MM/DD/YYYY format; controls when rights are waived

Payment Timing:

Specify when consideration is due and whether release is conditional on receipt

Claim Periods:

Account for bond claim windows under contract or statute

Record Retention:

Keep executed waiver and evidence per retention rules

Processing Lead Time:

Allow 3–10 business days for review and surety acknowledgements

Key milestones in waiver processing

A sequential milestone list helps planners see who acts and when during waiver execution.

01

Draft and Attach Evidence

Prepare waiver text and collect bond copy, invoices, and settlement receipts.

02

Internal Review

Legal and contract teams confirm authority and consistency with bond terms.

03

Execution

Authorized signatories sign; obtain witness or notary if required by state or contract.

04

Surety Acknowledgement

Provide executed copy to surety for recognition and to permit disbursement.

Real-world scenarios illustrating waiver use

Two representative examples show how waivers resolve disputes or release bond funds in practice.

Project Closeout Example

A subcontractor accepts partial payment in exchange for a conditional waiver of bond claims

The waiver conditions release of specific bond proceeds
The parties attached invoices and proof of payment; the surety acknowledged the waiver and disbursed funds, avoiding litigation and securing project completion.

Settlement Resolution Example

A contractor and owner settle a disputed delay claim with a mutual waiver of bond enforcement

The waiver applies only to claims arising from the specified change order
Both sides executed the waiver, counsel reviewed authority, and the surety recorded the release, concluding the dispute.

Practical tips for accurate and efficient waivers

Follow these best practices to reduce ambiguity and speed recognition by sureties and courts.

Be specific

Identify bonds, dates, invoices, and the precise scope of waived rights to prevent overbreadth.

Confirm authority

Obtain corporate resolutions or power-of-attorney evidence when an officer signs for an entity.

Use consistent names

Match party names to formation or bond documents; avoid abbreviations that could cause identity disputes.

Retain proof

Keep signed originals, supporting payments, and acknowledgements from sureties for audit and dispute defense.

eSignature vendor comparison for executing waivers (pricing and features)

Comparison shows basic starting prices and selected capabilities relevant to signing and retaining waivers. signNow appears first as the initial vendor column.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about waivers of bond

Answers to common questions on validity, execution, and digital signing of waivers of bond.

Need help? Contact support

Is an electronic waiver enforceable?
Yes, electronic waivers are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided the signature demonstrates intent, consent, attribution, and preserved records.
Do I need a notary?
Notarization depends on state law and the underlying contract; some states or contract provisions require notarization or witnessing for release instruments.
Can a surety refuse a waiver?
A surety may decline to act on a waiver if the waiver affects the surety's rights or obligations; obtain written acknowledgement from the surety when possible.
What if the wrong bond number is listed?
A mismatched bond identifier can render the waiver ineffective for the intended obligation; correct and re-execute the waiver promptly with all parties' assent.
Are remote notarizations acceptable?
Remote online notarization (RON) is permitted in many states with identity proofing and recording requirements; confirm the state's RON status and retention rules before using RON.
How long should I retain waivers?
Retain executed waivers for the contract term plus at least three to seven years depending on industry and state rules; see IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)) guidance where applicable.

Representative signatories and their roles

General Counsel

An in-house or external counsel frequently prepares or reviews waivers to confirm legal effect, ensure contractual compliance, and verify signatory authority before execution.

Authorized Officer

A corporate officer or manager with delegated authority signs on behalf of the principal or obligee; documentation of authority (board resolution or power of attorney) should accompany the waiver.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now