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Simple English definitions for legal terms
waiver of protest
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A quick definition of waiver of protest:
When someone gives you a special piece of paper that promises to pay you money, it's called a negotiable instrument. If that paper can't be cashed in, it's called dishonor. Normally, you would have to go through a formal process called protest to show that the paper couldn't be cashed in. But sometimes, the person who gave you the paper will say that they don't want to go through that process. That's called a waiver of protest. It means they're giving up their right to protest and are okay with the paper not being cashed in.
A more thorough explanation:
Waiver of protest is when a party to a negotiable instrument gives up the right to formally protest the instrument in case of dishonor. This means that they will not require a notary public to make a written statement that the instrument was not paid or accepted.
For example, if someone writes a check to another person and the check bounces, the person who wrote the check may waive their right to protest the dishonor of the check. This means that they will not require a notary public to make a written statement that the check was not paid or accepted.
Waiver of protest is often used in financial transactions, such as when a bank issues a letter of credit. By waiving the right to protest, the parties involved can save time and money by avoiding the formalities of protest.