A waiver of demand is a legally binding agreement that requires the endorser of a check or draft to take on liability if the check or draft is not cashed. The endorsement of the check means that the endorser agrees to be responsible for any penalties or fines incurred if the check is not cashed.

Waivers of demand can be written or implied. Generally, express waivers are written documentations of the endorser's willingness to incur liability. Implied waivers are generally seen when the agreement is an accepted custom of business, or when a person acknowledges a check without writing their name.

In certain regions, verbal waivers are sometimes accepted as binding. These may occur during business transactions, where parties have agreed to such an arrangement. When an endorser verbally waives a demand for payment, that agreement may be enforceable in court.

If an agreement fails to mention a waiver of demand, the endorser could still be held responsible for any penalty or fine incurred if the check is not cashed. Furthermore, the payment date of a check can be seen as an implied waiver of demand, as the endorser is expecting payment on that particular date.

The ability to waive demand is sometimes a beneficial arrangement for the payee, as they could take on the burden of payments in cases of default. Payees should be well aware of any applicable laws or regulations which govern this form of agreement, as definitions vary by jurisdiction.

In situations where checks are routinely issued, a waiver of demand can be an advantageous way of managing the check-cashing process. Payees should be aware of all their rights and obligations when signing a waiver of demand agreement in order to ensure that the transaction is done in the best interest of both parties.