tolling agreement
A "tolling agreement" can refer to arrangements in both business and legal contexts, involving either the processing of materials or the suspension of legal time limits.
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Definition
C1Business
(technical, manufacturing)A contract where one party processes raw materials or semi-finished goods for another party, who retains ownership of the materials.
Example
- The company entered into a tolling agreement to convert crude oil into gasoline for a fee.
- Under the tolling agreement, the manufacturer processed the raw materials provided by the client.
C1Law
(legal)A contract that temporarily suspends the statute of limitations, allowing more time for dispute resolution without filing a lawsuit.
Example
- The parties signed a tolling agreement to extend the deadline for filing the lawsuit.
- By entering into a tolling agreement, they were able to negotiate a settlement without the pressure of an expiring statute of limitations.
Similar
Terms that have similar or relatively close meanings to "tolling agreement":