Do verbal goodwill waiver stand in court?
<p>I'd like to put in scenario. Party A enters into a monthly payment contract with Party B. Party A pays monthly the ammount. One day, Party A is unable to pay the monthly installments. Party B says it's fine no problem, this was verbally recorded. Party A later resumes back the repayment. Months later, Party A and Party B has an argument. Now Party B wants to take legal action on Party A for the non payment several months ago. Does the original 'No Problem' good will waiver from Party B holds in court?</p>

<blockquote>
  <p>Does the original 'No Problem' good will waiver from Party B holds in court?</p>
</blockquote>

<p>Generally speaking, yes. Party B cannot undo his waiver unless (1) it was induced fraudulently, or (2) the contract supports striking that kind of waivers. There might be other scenarios entitling B to undo his waiver, but all of them are exceptional and don't differ that much from these two alternative conditions.</p>

<p>That being said, the evidence (such as the recording) should make it clear that party B waived enforcement of the <em>timeliness</em> of payments, not his entitlement to payments themselves.</p>

<p>In the event that party A has already made the payments he missed and scenario (1) or (2) applies, party B's remedies are limited to the concrete losses he incurred as a result of party A's belatedness. The principle is that remedies be available <em>to the extent necessary to avoid injustice</em>, as is frequently contemplated in the <a href="https://www.nylitigationfirm.com/files/restat.pdf" rel="nofollow noreferrer">Restatement (Second) of Contracts</a>.</p>

contract-law breach-of-contract