Tolling Agreement Define
This mutual fear helps to bring the parties together and formally settle the issue. Since the agreement is more likely under the toll agreement, the parties enjoy the benefits of litigation (threat of a possible cash judgment against the defendant) without actually incurring litigation and incurring costs. A toll agreement is an agreement that waives the right to require that disputes be dismissed due to the expiration of a limitation period. Its purpose is generally to give a party additional time to assess and determine the legitimacy and feasibility of its claims and/or the amount of its damages, without the need to take legal action. During this period, the parties waive any delivery by way of prescription that would otherwise occur during this period. In exchange for the applicant`s agreement to delay the filing of an appeal until the expiry of the toll agreement, the defendant agrees to waive the right to use this buffer period to calculate the end of the right in accordance with the limitation period. By suspending the limitation period, the parties have the necessary time to negotiate and settle the dispute. The risk of a possible dispute is the elephant in space that makes a toll agreement effective. An insightful potential plaintiff may use this elephant as an advantage, given that a potential defendant can bend to the back to not be sued.
The applicant may take advantage of the defendant`s fear by inviting the defendant to cooperate otherwise. For example, under the toll agreement, the applicant could ask the defendant to submit documents and/or answer questions about the dispute. A defendant can also benefit from the proceedings by being better informed of the claimant`s claims and positions. Thus, toll agreements can help to inform the parties of disputes and avoid certain costs. So, if you think you might soon be a party to a lawsuit, you should consider buying some time with a toll deal. You get some of the benefits of a process strategy without any cost. Approving a toll agreement can also be more about activity than process strategy. If, in the past, the parties have had a mutually beneficial business relationship and hope to do so in the future, but still want to preserve their legal rights, a toll agreement can achieve this.
If you are about to take legal action or think you are about to be sued, you should consider proposing a toll agreement. Part of the pressure when filing an appeal is to be certain that it will be filed before the expiry of the current limitation period. A toll agreement is a written agreement signed by both parties on a possible remedy and which suspends the limitation period for an agreed period. Under the toll agreement, the applicant`s lawyer should be firmly involved in all limitation matters. Information gathered informally in the course of negotiations should not be subject to costly requests for investigation. Even with the additional negotiating margin provided for in a toll agreement, the applicant may nevertheless bring a dispute in the event of failure of the negotiations. In this case, the defendant can benefit from the proceedings by being better informed of the claimant`s claims. Conversely, the applicant may benefit by introducing provisions into the toll agreement that may compel a defendant to submit documents that may not be available to the applicant, except in the discovery phase of a trial. .