Tolling Agreement Template for United States

A Tolling Agreement pauses the time limit for filing a legal claim, giving parties more time to resolve disputes before going to court. In the Philippines, it's commonly used when the statute of limitations (prescriptive period) is approaching but both sides want to explore settlement options first.

These agreements help avoid rushed litigation under Philippine Civil Code deadlines, especially in complex commercial or construction disputes. They let parties negotiate freely, share information, and work toward solutions while protecting their right to sue later. Filipino businesses often use them alongside mediation or when gathering evidence would take longer than the standard filing period allows.

Consider a Tolling Agreement when you need more time to resolve a dispute but the legal deadline to file a case is approaching. This proves especially valuable in Philippine construction projects, contract disputes, or complex commercial matters where gathering evidence and documentation takes longer than expected.

The agreement becomes crucial when both parties prefer settlement talks over immediate litigation, or when ongoing negotiations show promise but need more time. It's particularly useful in cases involving multiple stakeholders, technical investigations, or when waiting for expert opinions that could help resolve the dispute without court intervention. Many Filipino businesses use it during preliminary settlement discussions or while completing thorough due diligence.

• Basic Time Extension: The simplest form of Tolling Agreement, pausing legal deadlines for a fixed period to allow negotiations
• Conditional Tolling: Links the time extension to specific events or milestones, like completing technical investigations
• Multi-Party Agreement: Designed for complex disputes involving several stakeholders, with coordinated tolling periods
• Limited-Scope Tolling: Restricts the agreement to specific claims or issues while preserving others
• Rolling Extension: Includes automatic renewal provisions, extending the tolling period if certain conditions are met

• Potential Plaintiffs: Parties considering legal action who need more time to gather evidence or evaluate claims before filing suit
• Potential Defendants: Organizations or individuals facing possible litigation who prefer negotiating before court proceedings begin
• Corporate Legal Teams: In-house counsel who draft and review Tolling Agreements to protect their company's interests
• External Law Firms: Attorneys who advise clients on agreement terms and negotiate extensions
• Technical Experts: Specialists who need time to complete investigations or assessments that could influence settlement discussions

• Initial Assessment: Identify all potential claims and calculate their remaining prescriptive periods under Philippine law
• Party Details: Gather complete legal names, addresses, and authorized representatives of all involved parties
• Timeline Planning: Determine the desired extension period and any specific milestones or conditions
• Scope Definition: List exactly which claims and legal rights will be covered by the agreement
• Documentation: Collect relevant contracts, correspondence, and evidence related to the potential claims
• Platform Selection: Use our document generation platform to create a legally sound Tolling Agreement tailored to Philippine requirements

• Party Identification: Full legal names and addresses of all involved parties, including authorized signatories
• Claims Description: Clear identification of the specific claims or rights being tolled
• Time Period: Explicit start and end dates of the tolling period, with any extension conditions
• Prescriptive Period: Reference to relevant Philippine Civil Code provisions on time limitations
• Preservation Rights: Statement that all legal rights remain intact during the tolling period
• Governing Law: Explicit choice of Philippine law and jurisdiction
• Signatures: Proper execution blocks with witness requirements under Philippine law

A Tolling Agreement differs significantly from an Arbitration Agreement in both purpose and timing. While both aim to manage dispute resolution, they serve distinct functions in the Philippine legal system.

• Timing of Implementation: Tolling Agreements pause legal deadlines during negotiations, while Arbitration Agreement establishes the dispute resolution process before any conflict arises
• Primary Purpose: Tolling Agreements preserve legal rights while parties explore settlement, whereas Arbitration Agreements commit parties to resolve disputes outside court
• Duration Effect: Tolling Agreements are temporary and specific to particular claims, while Arbitration Agreements typically remain in force throughout the business relationship
• Procedural Impact: Tolling Agreements maintain access to courts but delay filing, while Arbitration Agreements generally replace court litigation with private arbitration