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A Tolling Agreement lets parties put legal time limits on hold, preventing the statute of limitations from running out while they try to resolve their dispute outside of court. Under Malaysian law, this written contract preserves everyone's right to sue later if negotiations break down, without rushing to file a lawsuit just to meet filing deadlines.

Malaysian businesses and individuals often use these agreements to buy time for good-faith settlement talks, especially in commercial disputes where relationships matter. The agreement must clearly specify which claims are covered and for how long the time limit is paused - typically following the guidelines set by Malaysia's Limitation Act 1953 for the underlying claims.

Consider a Tolling Agreement when you need more time to negotiate but are approaching Malaysia's legal filing deadlines. This tool proves especially valuable in complex commercial disputes, construction delays, or professional negligence cases where gathering evidence and expert opinions takes substantial time.

The agreement makes particular sense when both parties prefer an amicable settlement over litigation, but need to protect their legal rights. For example, Malaysian businesses often use these agreements during multi-party contract disputes, insurance claim investigations, or when dealing with regulatory compliance issues that require detailed technical analysis before deciding on legal action.

• Standard Limitation Pause: Basic Tolling Agreements that simply stop the limitation clock for a set period, commonly used in straightforward commercial disputes
• Conditional Investigation: Agreements that pause time limits while allowing specific fact-finding activities, popular in construction and professional service claims
• Multi-Party Extension: Complex versions covering multiple parties and claims, often used in large commercial projects
• Regulatory Compliance: Specialized agreements for matters involving Malaysian regulatory bodies, featuring specific statutory requirements
• Limited-Scope: Agreements that toll only specific claims or causes of action while letting others expire normally

• Corporate Legal Departments: Initiate and manage Tolling Agreements to protect company interests while pursuing negotiations
• Private Practice Lawyers: Draft and review agreements to ensure legal compliance and protect client rights
• Construction Companies: Use these agreements extensively during project dispute resolution phases
• Insurance Companies: Implement agreements during claim investigations to maintain settlement options
• Business Executives: Sign off on agreements as authorized representatives after consulting legal counsel
• Regulatory Bodies: May be involved when investigations touch on compliance matters under Malaysian law

• Identify Claims: List all potential legal claims and their standard limitation periods under Malaysian law
• Document Timeline: Record key dates, including when claims arose and when limitations would normally expire
• Define Scope: Specify which claims the agreement covers and the exact duration of the tolling period
• Gather Signatures: Confirm authority of all signing parties to enter into the agreement
• Set Conditions: Detail any requirements for information sharing or negotiation during the tolling period
• Use Our Platform: Generate a legally-sound agreement that includes all mandatory elements and follows Malaysian legal requirements

• Identification Section: Full legal names and addresses of all parties involved in the agreement
• Claims Description: Precise details of the claims being tolled and relevant limitation periods
• Tolling Period: Clear start and end dates for the suspension of limitation periods
• Rights Preservation: Statement that all legal rights remain protected during the tolling period
• Governing Law: Explicit reference to Malaysian law and jurisdiction
• Termination Clause: Conditions and process for ending the agreement early
• Execution Block: Proper signature spaces with authority declarations under Malaysian law

A Tolling Agreement differs significantly from an Arbitration Agreement in Malaysian legal practice, though both aim to manage dispute resolution. While a Tolling Agreement pauses legal time limits to allow negotiations, an Arbitration Agreement establishes a completely different path for resolving disputes outside the court system.

• Timing Effects: Tolling Agreements temporarily suspend limitation periods while maintaining all legal options; Arbitration Agreements permanently commit parties to resolve disputes through arbitration
• Purpose: Tolling Agreements preserve future litigation rights during negotiations; Arbitration Agreement excludes court litigation in favor of private dispute resolution
• Flexibility: Tolling Agreements can be terminated to resume normal legal timelines; Arbitration Agreements typically create binding, permanent commitments
• Cost Impact: Tolling Agreements generally involve minimal costs beyond negotiation expenses; Arbitration Agreements often require significant arbitration fees and administrative costs