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What Is A Tolling Agreement In Legal Terms

In exchange for the plaintiff delaying the filing of an appeal until the expiry of the toll agreement, the defendant agrees to waive the right to use that time to calculate the expiry period of the claim. With the statute of limitations suspended, the parties may have the necessary time to negotiate and resolve the dispute. The plaintiff can take advantage of the defendant`s fear by asking the defendant to cooperate in another way. Thus, under the toll agreement, the applicant could require the defendant to provide documents and/or answer questions about the litigation. While a toll agreement seems to benefit a plaintiff in the first place, there are also some good reasons why a defendant wants to enter into a toll agreement. One reason is to give an applicant additional time to assess the feasibility of their application; Without a statute of limitations, an applicant may be forced to take legal action only to meet a deadline. Where litigation can be avoided, it may be advantageous for a defendant to agree on the term limit for a specified period of time or until certain conditions are imposed. Approval of a toll agreement may also be more commercial than procedural. If, in the past, the parties have maintained a mutually beneficial business relationship and hope to do so in the future, while maintaining their legal rights, a toll agreement can achieve this. The threat of possible litigation is the elephant in space that makes an agreement on tolls effective.

A savvy potential complainant may use this elephant as an advantage, as a potential accused may well lean back to not be prosecuted. 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. Even with respect to the additional bargaining space that provides for a toll agreement, the applicant can pursue a dispute if the hearing fails. In this case, the defendant can benefit from the procedure by being better informed of the applicant`s claims. Conversely, the applicant can benefit by inserting provisions into the toll agreement that may compel a defendant to submit documents that are otherwise available to the applicant only at the stage of proceeding. Under the toll agreement, counsel for the applicant should have a firm understanding of all prescription issues. Information gathered informally during negotiations should not be subject to costly requests for investigation. So if you think you might soon be involved in a lawsuit, consider buying some time with a toll contract. You get some of the benefits of a process strategy without any cost. Co-accused should consider toll agreements if they wish for additional time to consider filing counter-claims against each other.

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