Facts about the Tolling Agreement template

Contents

What is a Tolling Agreement?

A tolling agreement is an agreement made between two parties involved in litigation to waive certain rules, rights or claims that may otherwise be applicable. For example, a tolling agreement may be used to waive the right to the statute of limitations for a certain matter. This can be helpful when the right or rule would get in the way of each party being able to make its strongest case.

Tolling is the legal term for pausing or suspending a particular right, especially the statute of limitations. Therefore, a tolling agreement is simply when two parties decide that they will toll a certain right. In addition to the statute of limitations, the statute or repose is a commonly tolled right.

It is important to note that a tolling agreement does not imply any other facts about the legal matter. So, tolling the statute of limitations does not mean that a party is guilty, innocent, responsible or not liable. It simply means that the parties believe that an impending deadline would interfere with the fair and accurate litigation of the matter. A tolling agreement does not affect any claims made before the agreement was put in place.

The only impact of a tolling agreement is that the parties can no longer claim that too much time has passed for the case to continue per the original deadline. The agreement may waive the right or delay the deadline.

What is a Tolling Agreement used for?

The statute of limitations requires that a claim regarding an alleged offense must be brought within a certain timeframe of the occurrence. The statute of repose imposes similar restrictions on the timelines for possible claims. A tolling agreement delays or waives these protections.

Sometimes these statutes are unclear. For example, the statute of limitations may begin once the claimant knows that he or she has a claim. However, when exactly this was can require clarification. Also, a defendant may want to use a tolling agreement to get more time to reach a settlement. A plaintiff may want more time to make a strong case.

Why should you use a Tolling Agreement form?

Tolling agreements are useful for setting up a clear structure for the timeline of a case. It can also help either or both parties to make and plan their cases more advantageously. Whatever the reason for entering a tolling agreement, having the details explained in writing is helpful for everyone involved.

This is significantly easier to do using a template. While a tolling agreement does not need to be complicated, there is no reason to reinvent the wheel. Plus, it is important to avoid any admission of guilt or other statements relevant to the case. Therefore, working from a tolling agreement form is the smart way to create your agreement document.

How to write a Tolling Agreement

Creating a tolling agreement requires careful writing to ensure that both parties are on the same page. It must clearly define what right, rule or claim is being waived. Additionally, it must not include any information or statements that may have an unintended effect on the case. These are some elements that must be in a tolling agreement:

  • Parties:

    The tolling agreement must clearly define the parties involved. This should include legal names and addresses.

  • Dates:

    The document must also include the relevant dates. This includes the start date on which the agreement becomes effective. It should also have the end date of the agreement.

  • No Litigation:

    During the rolling period, the right to sue is typically waived. Essentially, the agreement pauses the entire matter.

  • Declaration of No Liability:

    The document should clearly state that the agreement is not an admission of liability by either party. It should also have a statement that the agreement is not for or against any party.

  • Waiver:

    The tolling agreement must wait the right to any time-based defenses that would pass during the tolling period.

  • Extension Deadline:

    It is common to include a clause indicating a deadline for extending the agreement.

  • Signatures:

    The agreement must have space for the signatures of all parties. These signatures do not typically need to be witnessed or notarized

Tolling agreements do not typically mention any specific claims. Instead, they cover any claims between the two parties. This helps to keep the agreement neutral.

How to Fill Out a Tolling Agreement with PDFSimpli in Five Steps

  • 1. Prepare:

    As mentioned above, there are a number of elements that need to be included in a tolling agreement. Before beginning, it is important to have all the details ready. This should include the necessary information about the parties. Additionally, the parties should discuss the terms of the agreement in principle before beginning to write.

  • 2. Choose Software:

    Creating a tolling agreement using a form is much easier than writing one from scratch. Try using PDFSimpli is get started on yours. This allows you to start from one of several template options for a wide variety of legal forms. You can easily edit them with the online platform. Plus, you can save to the cloud and work on any device with a browser.

  • 3. Fill Out or Edit the Tolling Agreement:

    Once you have selected a template, it is time to fill out the form. This is easy to do in the PDFSimpli online editor. Just enter the relevant information such as the party details and dates. The template already includes most of the information you need. However, you can also edit the wording if you want to change anything.

  • 4. Review:

    A tolling agreement can be advantageous to either or both parties in a claim. However, it is also a significant decision to make, especially for the defendant. Make sure to carefully review the details of the agreement before signing. Additionally, check that it does not make any statements that could be detrimental in future litigation.

  • 5. Save, Download, Print or Send for Signature:

    Finally, it is time to sign the document. This must be done by both the claimant and the respondent. You can print, download or save the document to sign with ink. Alternatively, you can sign directly on PDFSimpli and send it to another user for a signature.

Tolling Agreement Frequently Asked Questionss

Defendants may consider using a tolling agreement to avoid any additional court filings. Public filings can be potentially damaging to a defendant, regardless of the outcome of the litigation. Therefore, defendants, especially businesses, may prefer to delay further claims while trying to reach a private settlement.

A tolling agreement may also be helpful if the defendant wants to introduce a counterclaim. Alternatively, additional time may allow the defendant to make a stronger case.

The statute of limitations and statute of repose grant rights to the defendant. If the plaintiff is concerned about these statutes preventing a positive outcome to a claim, he or she may consider a tolling agreement to delay the claim while building a better case. In some cases, it can also allow the claimant to find co-claimants such as in a class-action case.

In most cases, tolling agreements are not necessary because claims are brought within the necessary timeframe. However, if a deadline approaches and the parties do not enter a tolling agreement, the plaintiff may be unable to file or make an effective case. The defendant may receive a claim before being ready to defend against it. In either case, more time could have been helpful.