What signifies an election waiver in contract law?

In contract law, an election waiver refers to a situation where a party to the contract chooses to continue performing their obligations under the contract despite the occurrence of a breach by the other party. This choice demonstrates that the non-breaching party is waiving its right to terminate the contract due to the breach, essentially indicating that they are willing to overlook the breach and maintain the contractual relationship.

By continuing under the contract after a breach has occurred, the non-breaching party signals to the other party that it will not hold the breaching party accountable at that moment, which can also impact the rights to enforce the contract later. If the non-breaching party were to take action to terminate the contract or seek damages immediately upon discovering the breach, it would not be seen as waiving the breach.

The other options do not align with the concept of an election waiver. Terminating the contract after a breach reflects a decision to act on the breach rather than waive it. Unilaterally modifying the conditions of the contract does not involve a consideration of the breach and can introduce new issues rather than indicating acceptance of the previous terms despite a breach. Lastly, requesting compensation for damages represents a desire to remedy the breach rather than a decision to waive the breach