Standstill Agreement Long Stop Date

If the parties disagree on the importance or effectiveness of their status quo agreement and the defendant`s case is correct, the applicant may argue that the defendant is deterred from availing himself of his contractual rights. This can occur if there is a common acceptance of the importance of the agreement (called Estoppel by convention) or if the defendant exploited the plaintiff`s overt error in an unfair operation. Given the manner in which the agreement was drafted, the suspension of the statute of limitations would mean that the procedure would be adopted before the expiry of the relevant limitation period, whereas an extension of the statute of limitations would imply a limitation of the law. A status quo agreement can be granted to the applicant`s position with respect to the restriction, either by suspending the time limit or by extending it. Where the status quo agreement has the effect of suspending the period, the applicant has the same time to assert his rights as at the date of the agreement at the end of the status quo period. If the status quo agreement only extends the period, the applicant must initiate proceedings at the end of the status quo period. As a result, the status quo agreements were used to suspend the statute of limitations and the applicants had asserted their rights in a timely manner. At Russell and another v Stone (t/a PSP Consultants) et al [2017] EWHC 1555 (TCC), the parties entered into a status quo agreement on November 5, 2015 to avoid many claims being prescribed. The status quo period was extended in three subsequent agreements.

The complainants decided to initiate proceedings the day after the final status quo agreement expired. The defendants attempted to remove several appeals by which they argued that they were prescribed, as the extended limitation period had expired with the status quo contract. If the applicant requests an agreement shortly before the statute of limitations expires, the delay may be problematic. Even if the conditions are definitively established, all the formal conditions agreed by the parties, such as the signing, dating and restitution of the contract, cannot be met until the critical date. “The items are of good quality. I often print articles or listen to them in another way to draw the attention of my colleagues to this point. I`m going to find lexology a useful and entertaining update on topical topics, and I want to keep reading it. The status quo agreements contained recitals indicating that the purpose of the agreements was to extend the period during which applicants could initiate proceedings.

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