Escrow: what is it for and how does this new contractual arrangement work?
When concluding transactions, one of the most significant issues for the parties, as a rule, is the question of how to safely carry out settlements and ensure timely and accurate fulfillment by the counterparty of its obligations. Since June 1, 2018, a new instrument has appeared in the Civil Code, which is designed to protect the interests of the contracting parties. Now, when concluding almost any contract, both legal entities and individuals have the opportunity to use the escrow (escrow) design, which today is, in fact, a new interesting way to ensure the fulfillment of obligations and make payments. The advantages of this design are associated with the degree of reliability that arises due to the participation of a third independent person in the relationship - the escrow agent. Read about what an escrow agreement is and what are the features of its conclusion.
Author: Anastasia Zaitseva, lawyer in the maritime practice of Stepanov and Aksyuk Law Firm, associated office of GRATA International in Rostov-on-Don