TOLL AGREEMENT Meaning and
Definition
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A toll agreement is a legally binding contract that establishes the terms and conditions relating to the use or sharing of a particular resource or facility. Specifically, it involves an arrangement between two or more parties wherein one party grants another party the right to access and operate a specific infrastructure or equipment for a fee or toll. This type of agreement is commonly used in transportation, telecommunications, and energy industries.
In transportation, a toll agreement allows a party to use another entity's road, bridge, or tunnel for a predetermined fee. This arrangement is often seen when a private company constructs and maintains a toll road or bridge. The private company, also known as the toll authority, enters into agreements with other parties to collect fees from users for the use of these facilities.
In telecommunications, a toll agreement allows one party to use another party's network or infrastructure to transmit phone calls or data. This agreement typically involves the payment of a fee or per-minute charge based on the volume of traffic transmitted.
In the energy sector, a toll agreement may be established between an energy producer and a pipeline or processing facility owner. The producer pays a toll to the facility owner for the transport or processing of their product through the infrastructure.
Overall, a toll agreement establishes the terms, conditions, and fees associated with the use or sharing of a specified resource or facility in various industries.
Common Misspellings for TOLL AGREEMENT
- toll agreemant
- tole agreement
- tol agreement
- tall agreement
- tul agreement
- toll agrement
- tolle agreement
- tole agreemnt
- toll agreament
Etymology of TOLL AGREEMENT
The word "toll" originated from the Old English word "tol" or "toll" which meant a tax or levy imposed on goods or services. It can be traced back to the Old High German word "zol" or "zolle" and the Old Norse word "tol". These words ultimately derived from the Latin word "telonium" which meant a custom or duty.
The term "agreement" stems from the Old French word "agrement" which meant consent, pleasure, or approval. It comes from the Latin word "agreementum" which is a combination of "ad" meaning "to" and "gratum" meaning "pleasing, grateful".
Therefore, the etymology of the phrase "toll agreement" combines the idea of a tax or levy with a formal consent or contract, indicating an agreement relating to the payment or collection of tolls.
