What Is A Tolling Agreement In Business

A defendant can also benefit from the procedure by being better informed of the applicant`s rights and positions. Thus, toll agreements can help inform parties about disputes and avoid certain costs. Part of the printing when filing a complaint is certain that they will file before the applicable statute of limitations. A toll agreement is a written agreement signed by both parties for a possible appeal that suspends the statute of limitations for an agreed period. A toll agreement provides a period of negotiation for the parties before an applicant is required to file an action to enforce legal rights. As a general rule, neither party wants to spend energy and money to prove their case in court. Thus, an agreement on tolls pushes the parties to compromise their positions and settle down. This implicit threat of litigation, if negotiations fail, puts both sides under pressure to resolve the dispute. A toll agreement is an agreement to waive the right to request the dismissal of disputes due to the expiry of a statute of limitations.

Its purpose is generally to give a party additional time to assess and determine the legality and viability of its rights and/or the amount of its harm, without the need for legal action. During this period, the parties waive any prescription defence that would otherwise occur during such a period. On the other hand, this “discovery phase” can be costly, frustrating and tedious in a trial. For example, a toll agreement may provide a potential complainant with the opportunity to save money and obtain more information from the defendant than he would normally offer. (2) Commercial considerations among co-accused may have an impact on decisions on toll agreements. If you accept the toll until after the trial on the complainant`s case, this could lead to inefficiencies and longer litigation. Make sure your customer understands this before you accept the toll agreement. This particular issue can be dealt with by 1) the filing of counter-claims during the toll period when a party ends the toll period before negotiation or ends with sufficient time to allow, if necessary, the filing of counter-claims.

Posted in Uncategorized.