The legal definition of tolling agreement is associated with contract law. It is a type of agreement that deals with suspending or tolling a right to claim that all litigation should be dismissed based on a statute of limitations expiration.
Asserting Writes After The Statute Of Limitations Has Expired
Lawsuits can last for a long period of time. There are many facets involved such as the deposition of witnesses, filing claims and collecting evidence. If constraints were not put on the time that it takes to complete these tasks, some lawsuits might never be completed! Fortunately, the statute of limitations is used in the court system to set a fixed time in which certain matters must be completed.
Suspending The Rules
Most of the time, abiding by the statute of limitations is a good thing. It makes sure that the process of law occurs in an orderly fashion. However, there may be times when a suspension to the rules is a better choice. If an unseen event occurs, a contract can be created that has a tolling agreement. This agreement allows for the suspension of a statute of limitations time period. This provision will extend the rights of all parties past the time period that is normal for a statute of limitations. All parties involved agree to waive their defense that’s associated with the statute of limitations.
Allows More Time
While the statute of limitations is helpful, there are instances when having more time is needed. Tolling allows authorities and parties additional time to determine and assess the viability and legitimacy of claims. Some common situations where a tolling agreement might be involved include cases dealing with natural disaster, bankruptcy, insanity or good-faith negotiations.
Tolling Agreements In Sports
You’ll often see tolling agreements used in sports. This type of agreement will extend the eligibility of a player when special circumstances arise. In professional sports such as soccer, hockey, football, baseball and basketball, they use collective bargaining agreements that include detailed information regarding the rights associated with owners and players. These are usually based on fixed time frames.
For example, if a college football player is injured or transfers, he has the ability to apply for eligibility that would allow him to play for another year. In reality, this suspension or tolling allows him to participate for a longer time period than is usually allowed. All parties agree to his extension and won’t question eligibility.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!