Escrow Agreement
Contract involving a third party holding assets until conditions are met.
Detailed Explanation
An Escrow Agreement is a legal arrangement where a neutral third party (escrow agent) holds money, property, or documents on behalf of the primary parties to a transaction until specified conditions are met. Escrow is commonly used in real estate transactions, mergers and acquisitions, online transactions, and intellectual property transfers. The agreement defines what is held in escrow, conditions for release, responsibilities of the escrow agent, fees, and what happens if conditions aren't met. Escrow protects both parties by ensuring that payment and delivery occur simultaneously or that funds are available to satisfy obligations. The escrow agent must act impartially and only release assets according to the agreement terms or mutual written instruction from all parties.