Agreement Tolling Definition: Understanding the Basics
Agreement tolling is a legal concept that refers to the extension of a statute of limitations period by agreement between parties. In essence, it is a way to pause or delay the running of the statute of limitations clock to allow parties to negotiate or resolve disputes before taking the matter to court.
When parties agree to toll the statute of limitations, they essentially agree to temporarily waive the right to sue each other for a specified period. This means that the clock stops running on the statute of limitations during the time that the tolling agreement is in effect. Once the agreement expires, the clock begins to run again, and the parties must either resolve the dispute or take the matter to court.
Agreement tolling can be useful in a variety of contexts. It is commonly used in business and commercial disputes, where parties may need additional time to negotiate a settlement or come to a resolution outside of court. It can also be useful in personal injury cases, where the parties may need time to gather evidence or assess the extent of their injuries.
It is important to note that agreement tolling is not always an option. For example, in some states, certain types of claims cannot be tolled by agreement. Additionally, tolling agreements must meet certain legal requirements to be enforceable, such as being in writing and signed by all parties.
One potential downside of agreement tolling is that it can lead to a loss of evidence or witnesses over time. As the clock is paused, memories can fade, documents can be lost, and witnesses can become unavailable. For this reason, it is usually best to use agreement tolling only when it is absolutely necessary and to set a reasonable time frame for the agreement.
Overall, agreement tolling is a useful legal concept that can provide parties with additional time to resolve disputes and avoid the need for court intervention. However, it is important to understand the legal requirements and limitations of agreement tolling before entering into such an agreement. If you are considering using agreement tolling in your case, it is always best to consult with a qualified attorney to ensure that your rights are protected and that you are making an informed decision.