Waivers are a temporary status for players who are released by their team. A player stays "on waivers" for 48 hours, during which time other teams may claim the player and assume his contract. If no team has claimed the player before the end of the waiver period (which is always 5:00 PM Eastern Time), he is said to have "cleared waivers." The player's contract is terminated and he becomes a free agent. The only way to terminate a contract early (other than with an ETO -- see question number 57) is through the waiver process.1 The waiver period includes weekends and holidays.
A team can claim a waived player before he clears waivers only if one of the following is true:
The team is far enough under the salary cap to fit the player's entire salary.