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In this video, Michelle explains the concept of a waiver, which often appears in legal documents and bank agreements. A waiver is defined as a present relinquishment of a known right, meaning that for it to be valid, a person must currently possess the right they are waiving. The waiver must be made knowingly, where the individual understands what they are giving up, and this should be clearly articulated in the document before signing. It's important to emphasize that the right being waived is not an uncertain future claim; it must be a current right that the individual chooses to forfeit.