A tolling agreement provides that the limitations period will not run for a defined period, permitting parties to investigate or negotiate without the claimant filing to preserve the claim.
Agreements should specify the claims covered, the tolled period, and termination procedures.
Alternative Names:
Agreement to Toll, Standstill and Tolling Agreement
Why it Matters?
These agreements benefit both sides by avoiding a filing neither wants, but the drafting details determine whether they work. Ambiguity about which claims are covered, when the tolled period ends, and how much notice terminates it produces disputes at exactly the moment the limitations question becomes live. Specifying that the period resumes a defined number of days after written termination notice is the standard protection.
Frequently Confused with
Related terms
Frequently asked questions
What should a tolling agreement specify?
Can statutes of repose be tolled by agreement?
