As businesses work to maintain relationships with their clients, it`s not uncommon for agreements to be extended. One such agreement that is often extended is a tolling agreement.
A tolling agreement is a legally binding contract that allows a company to suspend the statute of limitations on a claim in order to continue negotiations or reach a settlement. This type of agreement is usually entered into when two parties are actively engaged in litigation or other legal proceedings. Tolling agreements can be beneficial for both parties, as they allow for continued negotiations without the risk of losing legal rights.
However, tolling agreements are typically time-limited and must be extended if negotiations are ongoing. This is when an extension of the tolling agreement comes into play.
An extension of a tolling agreement refers to the lengthening of the timeline within which the two parties will continue negotiation and come to a resolution. It allows for more time to work towards a mutually beneficial outcome without jeopardizing the legal rights of either party.
Extensions to tolling agreements can be granted for any reasons that both parties agree upon, such as changes in circumstances or new information emerging that could impact the outcome of the negotiations.
It`s important to note that any extension of a tolling agreement must be agreed upon by both parties, and the new terms of the extension must be put in writing and signed by all parties involved. This helps to ensure that both parties are in agreement and that the terms of the tolling agreement remain legally binding.
So why are extensions to tolling agreements important? Well, they allow for more time and flexibility in negotiating settlements, and can ultimately lead to a better outcome for both parties. Additionally, extensions to tolling agreements may allow parties to avoid the costs and burdens of protracted litigation, which can be financially and emotionally draining.
In conclusion, an extension of a tolling agreement is an important tool for businesses who need more time for negotiations, and who want to preserve their legal rights in the process. If you are considering entering into a tolling agreement or need to extend one, it`s important to work with an experienced attorney who can help you navigate the legal complexities and ensure that your rights are protected.