What is a standstill and tolling agreement?
Asked by: Joaquin Shields I | Last update: August 12, 2025Score: 4.7/5 (53 votes)
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What is a standstill agreement in simple terms?
Key Takeaways. A standstill agreement is a contract that contains provisions that govern how a bidder of a company can purchase, dispose of, or vote stock of the target company. A standstill agreement can effectively stall or stop the process of a hostile takeover if the parties cannot negotiate a friendly deal.
What is the meaning of tolling agreement?
A tolling agreement is typically an extrajudicial agreement entered into between the parties that tolls the statute of limitations for counterclaims for a specific period of time. Tolling agreements are contractual in nature, and as such, must be crafted for each individual case.
What is a standstill in a loan agreement?
When the subordinated lender is subordinated to the senior lender and there is a default on a loan, the senior lender will invoke the “standstill” provisions to prohibit or even disgorge payments by the borrower to the subordinated lender until the senior lender is paid in full.
What is the purpose of the standstill clause?
In a “standstill clause” the parties to a trade agreement commit to keeping the market at least as open in the future as it was as at the time of conclusion of the agreement.
What is a tolling agreement and why would we want to use one?
What is the effect of a standstill agreement?
A standstill agreement suspendsor extends the statutory limitation period. The standstill agreement stops the clock on the statutory limitation period, which is why they're often drawn up when the expiry of a limitation period is looming.
What is a priority and standstill agreement?
This agreement is used to modify and determine priority and rights among the mortgagees upon the occurrence of a default by the mortgagor under one or more of the mortgages. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
What is the stand still principle?
There are, for example: Stand still principle, which means that you cannot reduce the quantity and quality of the protected environments. Non-regression principle, a more recent one, saying that you cannot draw back existing environmental regulation.
What is a standstill forbearance agreement?
A forbearance agreement, also known as a “standstill agreement,” is a separate contract that obligates a lender to refrain or forbear from enforcing existing or anticipated defaults for a period of time in exchange for new agreements by a borrower. Typically, a borrower gets more time by giving up rights.
What makes a loan agreement void?
Lack of legal capacity
For a contract to be legally binding, the parties signing the agreement should be of legal capacity. Meaning the individual should be capable of understanding what they are agreeing to. Lack of legal capacity makes a contract null and void.
What is a tolling and standstill agreement?
https://content.next.westlaw.com/practical-law/document/Ic862c996672011e79bef99c0ee06c731/Tolling-and-Optional-Standstill-Agreement?viewType=FullText&transitionType=Default&contextData=(sc.Default) A tolling agreement with optional standstill provisions specifying the terms for tolling the statute of limitations of ...
What is tolling in finance?
Financial Terms By: T. Tolling agreement. An agreement to put a specified amount of raw material per period through a particular processing facility. For example, an agreement to process a specified amount of alumina into aluminum at a particular aluminum plant.
What is the principle of tolling?
The principle of equitable tolling provides that the statute of limitations will not bar a claim if the individual, despite reasonable care and diligent efforts, did not discover the injury until after the limitations period had expired.
What is consideration in a standstill agreement?
Careful consideration must be made to ensure that the parties expressly agree the intended effect of the standstill and that the wording of the standstill agreement clearly and consistently reflects that intention.
What does standing in agreement mean?
A Standing Agreement is an agreement with a Supplier/Merchant for a specified product, at a specified price from a specified supplier, for a specified term (eg.: chairs, file cabinets, etc.) The following is a list of the commonly used standing agreements and what they cover.
What is it called when you don t hold up your end of a contract?
A breach of contract is when one party to the contract doesn't do what they agreed. Breach of contract happens when one party to a valid contract fails to fulfill their side of the agreement. If a party doesn't do what the contract says they must do, the other party can sue.
What are the two types of forbearance?
There are two types of forbearance: general and mandatory. Interest on your loans continues to accumulate while in forbearance.
What is the statute of limitations on a standstill agreement?
A reminder about standstill agreements
The statutory limitation period for contractual claims is six years, with time running from the date on which the cause of action accrued.
What is the purpose of a standstill?
Standstills can be stand-alone agreements or included in confidentiality agreements or letters of intent. Standstills help the target company to control the deal process and prevent a hostile bid for the company after the acquiror or investor has had the benefit of the target company's confidential information.
What is the stand still theory?
The Stand Still Theory proposed by Murray suggests that coral reefs form through the circular growth of coral polyps on submerged platforms and hills located at a suitable depth of 54-55 meters, with the outer edge growing rapidly to form ring-shaped reefs and atolls as the lagoon deepens over time through dissolution.
What is an example of a standstill clause?
Example: Standstill Period: During the Standstill Period, the Investor agrees not to acquire additional shares of the Company, engage in any tender offer or proxy contest without prior written consent of the Board of Directors.
What is the stand still current?
The standstill current is the effective sinusoidal current which the motor draws at n<100 rpm to produce the standstill torque. The peak current (effective sinusoidal value) is approximately equivalent to 5-times the rated standstill current.
What are the effects of standstill agreement?
Standstill agreements to extend or suspend a limitation period have become a regular feature of civil litigation. They enable the parties to focus on the pre-action protocol requirements without worrying about limitation. They can also save the cost of the court issue fee if the dispute settles pre-action.
Can you extend a standstill agreement?
Most parties in practice use Standstill Agreements which allow parties to extend time by contractual agreement without the need to issue a claim through the Court.
What is a standstill arrangement?
Meaning of standstill agreement in English
an agreement between two people or companies in which the person or company lending money agrees that the loan need not be paid back for a period of time: The company has a standstill agreement on its debt repayments.