Definition Of A Tolling Agreement

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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. On the other hand, in a dispute, this “discovery phase” can be costly, frustrating and time-consuming. Thus, a toll agreement may offer a potential plaintiff the opportunity to both save money and obtain more information from the defendant than they would otherwise be willing to offer. 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. For example, if a college football player is injured or transferred, he has the option to apply for permission that would allow him to play for an additional year. In reality, this suspension or toll allows him to participate for a longer period than is normally allowed. All parties agree with its extension and will not question eligibility. 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. 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 for possible legal action, which suspends the limitation period for an agreed period..

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