This document is a standstill agreement for a firm that considering merger with another firm. It assures that the status quo remains while the partners pursue various alternatives.
Alaska Standstill Agreements
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Multi-State
Control #:
US-L0804
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Word;
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FAQ
A standstill agreement prevents a party from issuing proceedings during the currency of that agreement. As such a standstill agreement is a voluntary contractual arrangement between the parties to pause limitation for an agreed length of time (typically 3-6 months).
: an agreement under which litigation is forestalled between two parties. : an agreement under which a party agrees to refrain from taking further steps to acquire control of a corporation (as by additional purchases of stock)
A standstill agreement is a contract that limits or suspends the activities of one or more parties in a business agreement for a predetermined period of time. By entering into a standstill arrangement, the parties can suspend or extend the statute of limitations, which can be a useful tool in civil litigation.
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.
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.
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.