Standstill Contract and Covenant Not to Sue (Tolling Contract)

The Standstill Contract and Covenant Not to Sue (Tolling Contract) is a legal template designed to regulate and manage disputes and potential litigation between parties. This contract establishes an agreement between two or more parties to temporarily suspend the running of the statute of limitations for initiating legal proceedings during a specific period. By signing this contract, all parties involved commit to refraining from filing a lawsuit or pursuing any legal action against each other, thus preserving their rights until a certain event or condition is met. This type of contractual arrangement is commonly utilized in situations where parties want to allow additional time to negotiate, mediate, or resolve their issues without the pressure of imminent litigation. It stipulates the agreed-upon terms, conditions, and limitations for the standstill period, such as the duration, obligations, and potential penalties for breaching the agreement. Ultimately, the Standstill Contract and Covenant Not to Sue (Tolling Contract) aims to maintain the status quo, provide a framework for peaceful dispute resolution, and potentially avoid costly and time-consuming lawsuits.