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A Tolling Agreement pauses the legal time limit for bringing a court claim in England and Wales. It's commonly used when parties need more time to negotiate a settlement or gather evidence before starting formal litigation, helping them avoid rushing to court just to meet a deadline.

These agreements protect both sides by preventing the claim from becoming time-barred under the Limitation Act 1980. They're particularly valuable in complex commercial disputes, professional negligence cases, and construction claims where parties want to explore out-of-court solutions without losing their right to sue later. The agreement must clearly state which claims it covers and for how long the limitation period is suspended.

Consider a Tolling Agreement when you're approaching a limitation deadline but need more time to resolve a dispute amicably. This proves especially valuable in professional negligence claims, construction disputes, or complex commercial matters where gathering evidence and negotiating takes substantial time. Many businesses use these agreements to avoid the cost and stress of rushing into court proceedings.

The agreement becomes vital when early settlement talks show promise but the limitation period looms near. It's particularly useful for multi-party disputes or cases involving detailed technical investigations. Just ensure you put it in place well before the limitation deadline expires - courts won't revive a claim that's already time-barred.

• Standard Fixed-Period: Sets a specific end date for the tolling period, commonly used in straightforward commercial disputes
• Rolling Extension: Allows parties to extend the tolling period by mutual agreement without creating a new document
• Conditional Tolling: Links the agreement's duration to specific events, like completing an expert investigation or mediation
• Limited-Scope: Covers only certain claims or causes of action while letting others continue under normal limitation rules
• Standstill Plus: Combines tolling with additional agreements about information sharing, confidentiality, or negotiation procedures

• Claimants: Parties with potential legal claims who need more time to investigate or negotiate before filing court proceedings
• Defendants: Potential defendants who prefer exploring settlement options without the pressure of immediate litigation
• Solicitors: Draft and negotiate the Tolling Agreement terms, ensuring their clients' interests are protected
• Insurance Companies: Often involved in professional negligence or construction disputes where claims might affect policy coverage
• Expert Witnesses: Technical specialists whose investigations benefit from extended time periods before formal proceedings begin

• Identify Claims: List all potential claims and causes of action to be covered by the agreement
• Check Deadlines: Calculate the current limitation period expiry dates for each claim
• Define Duration: Decide how long the tolling period needs to be, including any extension options
• Gather Details: Collect full legal names and addresses of all parties involved
• Set Parameters: Outline any conditions for information sharing or settlement discussions during the tolling period
• Review Authority: Confirm signatories have proper authority to bind their respective organisations

• Party Details: Full legal names, addresses, and registration numbers of all parties involved
• Claims Covered: Clear description of which legal claims or causes of action are being tolled
• Time Period: Specific start and end dates for the tolling period, including any extension mechanisms
• Limitation Period: Reference to relevant sections of the Limitation Act 1980 being suspended
• Governing Law: Express choice of English law and jurisdiction
• Preservation Rights: Statement that all legal rights and defences remain intact
• Execution Block: Proper signature spaces with clear authority statements

A Tolling Agreement is often confused with a Standstill Agreement, but they serve distinct purposes in dispute resolution. While both can pause legal proceedings, their scope and effects differ significantly.

• Primary Purpose: Tolling Agreements specifically suspend limitation periods for bringing claims, while Standstill Agreements more broadly prevent parties from taking any specified legal or commercial actions
• Scope of Effect: Tolling Agreements focus solely on preserving legal rights related to limitation periods, whereas Standstill Agreements can cover multiple aspects including voting rights, asset sales, or corporate actions
• Duration Structure: Tolling Agreements typically have fixed end dates tied to limitation periods, while Standstill Agreements often link to specific corporate events or conditions
• Legal Implications: Tolling prevents time-barred claims, while Standstill maintains status quo across broader business operations