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A Tolling Agreement pauses the time limit for filing a lawsuit, giving parties more breathing room to resolve disputes without rushing to court. In Nigeria's legal system, these agreements are particularly useful when dealing with claims under the Limitation Law, which typically sets strict deadlines for different types of legal actions.

By signing a Tolling Agreement, both sides can focus on negotiations or alternative dispute resolution without worrying about the statute of limitations expiring. This approach saves time and money, especially in complex commercial disputes where Nigerian businesses might need extra time to gather evidence or work out settlement terms.

Consider a Tolling Agreement when you need more time to investigate or negotiate a potential claim before filing a lawsuit in Nigerian courts. This is especially valuable in complex commercial disputes where gathering evidence takes time, or when dealing with multiple parties across different states within Nigeria.

The agreement becomes crucial as you approach the end of your limitation period under Nigerian law���typically six years for contract disputes and three years for tort claims. It's particularly useful during settlement discussions, mediation attempts, or when investigating fraud cases where documentation from regulatory bodies like the EFCC might take months to obtain.

• Basic Time Extension: The simplest form of Tolling Agreement in Nigeria, pausing limitation periods for a fixed duration while parties negotiate
• Conditional Tolling: Links the time extension to specific milestones or conditions, like completing an audit or receiving regulatory approval
• Multi-Party Agreement: Modified to accommodate several parties involved in complex disputes, common in construction or oil/gas sectors
• Limited Scope Agreement: Restricts tolling to specific claims or issues while preserving limitation periods for others
• Rolling Extension: Includes automatic renewal provisions, typically used for ongoing investigations or lengthy settlement discussions

• Corporate Legal Departments: Draft and review Tolling Agreements to protect their companies' interests during complex negotiations or investigations
• Private Law Firms: Advise clients on terms and prepare agreements, especially in commercial disputes or multi-party litigation
• Business Executives: Authorize and sign these agreements when facing potential claims or during settlement discussions
• Government Agencies: Use tolling provisions during regulatory investigations or enforcement actions
• Financial Institutions: Employ these agreements in debt recovery cases or when resolving complex banking disputes

• Claim Details: Document the specific claims or disputes to be tolled, including relevant dates and limitation periods under Nigerian law
• Party Information: Gather full legal names, addresses, and authority status of all involved parties
• Timeline Planning: Determine the exact tolling period needed, considering investigation time and negotiation goals
• Documentation: Collect supporting evidence, correspondence, and relevant contracts that establish the underlying dispute
• Compliance Check: Verify the agreement aligns with Nigerian Limitation Law and state-specific requirements
• Review Process: Set up internal approval steps and use our platform's automated drafting tools to ensure legal completeness

• Identification Section: Full legal names and addresses of all parties, plus their authorized representatives
• Scope Definition: Clear description of claims or disputes covered by the tolling period
• Time Provisions: Specific start and end dates of the tolling period, plus any extension mechanisms
• Rights Preservation: Statement that all legal rights and defenses remain intact during the tolling period
• Governing Law: Express choice of Nigerian law and jurisdiction specifications
• Signature Block: Proper execution spaces with witness requirements per Nigerian contract law
• Consideration Clause: Mutual promises and benefits exchanged between parties

A Tolling Agreement differs significantly from an Arbitration Agreement. While both documents help manage dispute resolution, they serve distinct purposes in Nigerian legal practice.

• Timing Effect: Tolling Agreements pause the statute of limitations deadline, while Arbitration Agreements establish an alternative dispute resolution process
• Primary Purpose: Tolling Agreements buy time for investigation and negotiation, whereas Arbitration Agreements commit parties to resolve disputes outside court
• Duration: Tolling Agreements typically have specific end dates, while Arbitration Agreements remain effective throughout the business relationship
• Procedural Impact: Tolling preserves the right to litigate later, but Arbitration usually waives the right to court proceedings entirely
• Cost Implications: Tolling focuses on preserving rights at minimal cost, while Arbitration involves setting up and funding a complete dispute resolution mechanism