(Application of Escrow
Escrow is a common law term used in civil and commercial practices. Because it enhances trust among trade dealers and secures the performance of contracts, the term is not only widely used, but has been greatly developed as a complete legal system. Its core contents are: Party A deposits documents, deeds, currency, securities or other assets to an independent third party (generally known as "Escrow Agent") who, upon satisfaction of stipulated or mandatory legal conditions, hands the said assets over to Party B. It means that the transfer cannot occur until stipulated conditions are satisfied (documents signed or payment cleared or cargo delivered, etc.), or certain legal conditions are met (e.g. a certain person died or lost legal status for liability), or the assets shall be returned to Party A.&nbs免费论文网 【http://www.51lunwen.net】p;For instance, a real estate developer requires a contracted construction company to pay a quality deposit fee. The construction company then requests that a bank manages the deposit fee so that the developer can use the fee only after it has paid the construction commission to the construction company. In this case, the condition for the bank (Escrow Agent) to deliver the deposit fee to the developer is that the developer will begin to pay construction commissions to the construction company.
Below are several Escrow applications that are used most often in international commerce and which have begun to be introduced to China in recent years:
1. Escrow Account
An escrow account is the most used application of escrow in business transactions. It refers to the bank account established by Party A,&n
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