������Ƶ

A Tolling Agreement pauses the time limit for filing a legal claim in the UAE courts, giving parties more time to negotiate and resolve disputes without rushing to litigation. It's commonly used when the statutory limitation period is approaching but both sides want to explore settlement options first.

Under UAE Civil Code Article 488, these agreements help preserve legal rights while creating breathing room for mediation or settlement talks. Companies often use them in construction disputes, commercial conflicts, and insurance claims where gathering evidence or calculating damages needs extra time. The agreement must be specific about which claims it covers and exactly how long the pause will last.

Consider using a Tolling Agreement when your UAE legal dispute needs more time for resolution but the statute of limitations is approaching. This proves especially valuable in complex construction claims, where technical evaluations and expert reports take months to prepare, or in commercial disputes requiring detailed financial analysis.

The agreement becomes crucial when parties want to negotiate seriously but need time to gather evidence, calculate damages, or explore Sharia-compliant settlement options. It's particularly useful in multi-party disputes involving international contractors or when dealing with government entities where internal approvals take longer than standard limitation periods allow.

• Standard Fixed-Period: Sets a specific time extension, typically 6-12 months, commonly used in UAE commercial disputes
• Event-Based: Pause continues until a defined event occurs, like completing expert analysis or regulatory review
• Claim-Specific: Covers particular claims while leaving others unaffected, useful in multi-faceted construction disputes
• Conditional: Links the Tolling Agreement to specific settlement negotiations or mediation efforts
• Renewable: Includes provisions for extending the tolling period through mutual agreement, popular in complex infrastructure projects

• Corporate Legal Departments: Draft and review Tolling Agreements to protect company interests during negotiations
• External Law Firms: Advise clients on agreement terms and ensure compliance with UAE Civil Code requirements
• Construction Companies: Often use these agreements in complex project disputes involving multiple contractors
• Insurance Companies: Employ them during claim investigations to preserve rights while gathering evidence
• Government Entities: Participate when public projects or regulatory matters require extended resolution timelines
• Corporate Executives: Sign as authorized representatives after reviewing terms with legal counsel

• Identify Claims: List all potential legal claims and their current limitation periods under UAE law
• Gather Parties: Confirm full legal names and authority of all involved entities, including any government stakeholders
• Set Timeline: Specify exact start and end dates for the tolling period, considering UAE Civil Code requirements
• Define Scope: Clearly outline which claims and rights are being preserved
• Document Evidence: Compile existing documentation and evidence related to potential claims
• Draft Agreement: Use our platform to generate a legally compliant document tailored to UAE requirements
• Review Terms: Ensure all parties understand the agreement's implications in both English and Arabic

• Party Details: Full legal names, addresses, and authorized signatories of all involved entities
• Claims Definition: Precise description of claims being tolled under UAE Civil Code Article 488
• Tolling Period: Clear start and end dates for the suspension of limitation periods
• Governing Law: Explicit reference to UAE law and relevant emirate jurisdiction
• Language Clause: Specification of Arabic as controlling text with optional English translation
• Preservation Rights: Statement preserving all legal rights during the tolling period
• Execution Requirements: Signature blocks compliant with UAE electronic signature laws
• Extension Terms: Conditions and process for extending the tolling period if needed

A Tolling Agreement differs significantly from a Construction Agreement, though both often appear in UAE development projects. While a Construction Agreement outlines the full scope of construction work, responsibilities, and payment terms, a Tolling Agreement serves the specific purpose of pausing legal time limits during disputes.

• Timing and Duration: Construction Agreements govern the entire project lifecycle, while Tolling Agreements temporarily suspend limitation periods for specific claims
• Primary Purpose: Construction Agreements establish project obligations and deliverables, whereas Tolling Agreements preserve legal rights during dispute resolution
• Legal Effect: Construction Agreements create new obligations under UAE law, while Tolling Agreements pause existing statutory deadlines
• Scope of Coverage: Construction Agreements detail comprehensive project terms, but Tolling Agreements focus solely on preserving specific legal claims