One sentence in the contract, one quick “it’s just a formality” and the problem is over. Waiving your right to compensation often means that you are voluntarily giving up money to which you would otherwise be fully entitled. When is such an arrangement valid, when is it not, and why is a waiver of the right to compensation on land a frequent source of vexatious litigation?
Imagine someone telling you, “If a problem happens, you won’t ask us for anything.” And you agree – in writing and by signing. That’s exactly what a waiver of indemnity is. It is a legal act whereby the injured party voluntarily agrees not to seek compensation from the other party for any damages they incur.
Such clauses are commonly found in work contracts, lease agreements, agreements between neighbours, as well as in various construction projects. They are often intended to calm the situation and simplify cooperation. However, these “simplifications” can sometimes be very expensive.
Althoughthe Civil Code generally allows a person to waive his or her property rights, this certainly does not mean that every waiver of the right to compensation automatically stands. It depends on how it is written, when it arose and what damages it is intended to cover. There is a difference between minor damage to a fence and a situation where someone defaces your entire property.
Beware: even if the contract says that you are doing something at your own risk or that you are assuming the risk, this does not automatically mean that you have waived your right to seek compensation from the person who caused the damage.
It may sound the same at first glance, but legally speaking there is a huge difference between when you waive your right to compensation. It’s different if you waive the right beforehand, when there is no damage, and it’s different if you do so after the damage has actually occurred.
In practice, we very often see people signing a waiver of the right to compensation in advance – typically right in the contract. At that point, nobody knows whether the damage will happen at all, how big it will be or what the consequences will be. This is why this type of waiver is considered significantly riskier. One is giving up something that one does not even know yet.
In property matters, liability can only be limited in advance within the limits of the law and the agreement must be clear as to what it covers. At the same time, the law expressly provides for cases where such an agreement is disregarded (in particular, in the case of damage to natural rights, intent/ gross negligence and the weaker party). If someone causes you damage that you could not have expected at the time you signed the contract, it is not at all certain that the waiver will apply.
In contrast, a waiver after the damage has occurred, for example under a settlement agreement, tends to be much stronger in legal terms. In such a case, both parties already know what happened, the extent of the damage and the value of the claim that the injured party is waiving. This is why courts generally respect such agreements. However, a settlement agreement is intended to settle only what the parties knew and wanted to settle. It does not apply to claims that were expressly excluded, or to claims that were clearly not contemplated when signed.
Simply put: waiving a right “blindly” is always more dangerous than waiving it when you have clarity. This is where consulting an attorney makes sense – before you sign something that may have long-term consequences.
Contact the Accessible Advocate. One piece of understandable advice today can save you big worries tomorrow.
A special chapter is the waiver of the right to compensation for damage to land. This is where mistakes are most often made. A typical scenario? A cable or pipeline is about to run on your property, or construction is about to take place on neighbouring land. The investor assures you that you have nothing to worry about and presents you with a contract stating that you waive your right to compensation.
At first glance, this may seem reasonable; after all, you don’t want to make life difficult for yourself or others. But land is not an office chair. And the damage to it may take time to show up: a landslide, impaired drainage, impaired access or a permanent reduction in property value.
That’s why the courts look very carefully at exactly what the waiver was intended to cover. If the damage was unforeseeable, disproportionately extensive, or caused by gross misconduct, the waiver may not cover it at all.
It is also important to mention that if someone waives the right to claim compensation for damage to the land and the waiver is entered in the public register, this also operates against subsequent owners.
It may surprise you to know that there are situations where the law protects the injured party even against his own signature. In other words, even if you have signed a waiver, it may not mean the end of your claim.
A typical example is damage caused by intent or gross negligence. If someone acts recklessly, gambles with the property of others, or knowingly breaches their duties, no contractual clause will automatically save them.
Similarly, agreements that are vaguely or extremely one-sided will not stand. A formulation such as “I waive all claims of any kind” may sound strong, but legally it tends to be weak. After all, the law does not like vagueness, and certainly not when it is intended to go against one party. Therefore, if you need a waiver of your right to compensation drafted, do not hesitate to take our help.
Tip: Have you been a victim of a crime and suffered damages? What are the defence options under Czech law and when can you claim damages in criminal proceedings? Our article will answer these questions.
When reading contracts, most people tend to skip over legal terms, saying that they mean the same thing. It just doesn’t work that way in law. A typical example is the difference between the terms damage and injury, which plays a key role in the waiver of the right to compensation.
Damages are usually understood as a property loss – that is, a situation where you have lost something, had something destroyed or had to spend extra money. In contrast, detriment is a broader concept. It can include not only property damage but also other negative interference, such as restricting the use of an item or reducing its future value.
This is where the problem arises. Many contractual arrangements only expressly speak of one party waiving its right to compensation. A layman would logically think that this waives everything. But legally, it doesn’t have to be that way. If the contract only deals with the term “damages”, it may be that other forms of injury do not fall within the waiver at all.
In the case of land, this distinction is particularly important. Damage to drainage, impairment of access, long-term waterlogging or a reduction in the market value of the land may not always be seen as classic damage in the narrow sense. Yet they have very real and often long-term consequences for the owner.
Courts therefore scrutinise carefully in litigation what terms the contract uses and what the parties actually meant by them. That is why it is true that a single word in a contract can determine whether or not you are entitled to compensation. That’s also why it pays not to leave legal terminology to chance.
In practice, we see people underestimate the value of waiving the right to compensation. Often because the damage has not yet occurred and everything is going smoothly. But the law deals with those times when things stop running smoothly.
Once the damage occurs, the other party usually pulls out a signed document and says you have waived the right. That’s when the bread breaks. It starts to become a matter of what you actually signed, whether you understood it, and whether the agreement is even valid.
Without legal help, it is very easy to get defensive in this situation, even though the law may be on your side.
Tip: In a heavy storm, a tree from the next property will break and fall on your fence or car. Or you come home to find your upstairs neighbour has flooded your apartment. What about compensation in such cases?
If the waiver of the right to compensation concerns land, buildings or larger sums, caution is in order. Likewise in a situation where you have to sign a contract that you don’t fully understand, or where the damage has already occurred and the other party refuses to pay specifically citing the waiver.
In these cases, a short consultation can make the difference between losing tens or hundreds of thousands of crowns and getting them back.
At Affordable Lawyer, we take a practical look at situations like this. We don’t recite paragraphs, but we explain what your contract really means and what your real rights are. We will assess the validity of a waiver, suggest a safer solution, or help you seek compensation if the damage has already occurred.
Most importantly – you know up front how much legal help will cost you.
A waiver of damages is a seemingly inconspicuous contractual arrangement, but one that can have significant financial implications because you are voluntarily giving up a right to money to which you would otherwise be entitled. While the Civil Code allows a person to waive his or her property rights, this does not mean that every waiver of the right to compensation is automatically valid – it always depends on how it is worded, when it was made and what damages it is intended to cover. A waiver in advance, i.e. before the damage occurs, is particularly risky because you are giving up something whose scope and consequences you do not know, whereas a waiver after the damage has occurred tends to be more legally robust. It is also very common and problematic to waive the right to compensation for damage to land, where the damage may only become apparent with the passage of time and have long-term consequences, such as a reduction in the value of the property. It is also important to distinguish between the concepts of damage and injury, as contracts often only work with the narrower concept of damage, and other negative effects may not be covered by the waiver at all. In addition, the law protects the victim in cases where the damage is caused intentionally, through gross negligence or where the agreement is vague or extremely one-sided. This is why an “innocent” sentence in a contract often becomes a problem only when the damage actually occurs, and without professional help, one can easily find oneself in a disadvantageous position.
No. If it contravenes the law or good morals, it may be invalid.
Not always. It often does not apply to serious and unforeseen damage.
There are still options for defence. The validity of the arrangement can be legally assessed.
Yes. The sooner you address the situation, the better your chances of success.
Get compensation for harm or damage – quickly and without stress. We will assess your chances, propose a strategy and prepare a challenge. All within 48 hours of placing your order. If necessary, we will then file a lawsuit and arrange legal representation. We will stand up for you fully.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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