ntract, Company B should take over Company A's power in Company C's operation. When transfer conditions are met, the law firm (Escrow Agent) and Company B should co-operate to go through required proceedings to complete the stock transfer. Since this plan protects the interests of both Company A and Company B, and prevents the project from being delayed, it was immediately agreed to and accepted by both parties.
Law firms are playing a more and more active role as Escrow Agents in sales contracts. When the buyer deposits goods payment to a special account (Escrow Account) established by the law firm, the law firm issues a law-bridge.net/english/ target=_blank>lawyer's letter to the seller, notifying the arrival of the payment. The seller then begins to deliver goods and claim payment from the law firm with valid documents. This new practice is worth recommending, especially in today's business environment that is lacking of credit in performing contracts.
Through the discussion above, we are now clear that the mechanism of Escrow is "deposit" and "(conditional) delivery." In practice, we can design various plans for our clients in light of such a mechanism. Although there are no statutory restraints at present, it shall be noted that related parties shall make it clear in the contract responsibilities of the Escrow Agent, so as to minimize the risks invoked by negligence of the Escrow Agent. This is one of the reasons that some overseas clients request government depa英语论文网 【http://www.51lunwen.org】rtments to be the Escrow Agent.
(This article is first been published in China Daily, July 16, 2002))
本文来自：英语论文网 【http://www.51lunwen.org】 |
论文编号：
lw200701122201184708 
