Elec Sample Clauses

Elec. Supp. (Russian Juridical Journal Electronic Supplement), Vol. 2016, Issue 2 (2016), p.38. conveyed in a transaction is not always desirable or possible.”103 By choosing neutral third party and endowing it with authority to certify the occurrence of certain conditions necessary for fulfillment of the main agreement, businesses are reducing the risk of non-performance by counter party. That is to say, parties are placing the transaction beyond their reach and „except for the unfulfilled conditions, there is no turning back.”104 Thus, escrow agreement offers flexible, universal legal solution main function of which is guaranteeing execution of principal obligations arising out of the agreement between creditor and debtor. The guarantee effect stems not from different ways of securing execution of commitment, but rather by setting up special legal regime for property which is being isolated within specific account of the escrow agent105. Escrow agent is representing interests of both parties – the depositor and beneficiary, and is acting as an authorized representative, who carries out its duties in accordance with the agreement. Nevertheless, escrow agent shall remain neutral third party towards depositor and beneficiary thus guaranteeing interests of both parties. The very nature and idea behind the escrow agreement – to safeguard contracting parties against non-performance, indicates the most important feature of such agreement - neither of them can exert any rights over the legal documents/funds deposited in escrow. In such circumstances, from the legal perspective escrow agreement should be recognized as a real (not consensual) contract. Real contracts are those that enter into the force after the object of transaction is delivered to entitled party, i.e. besides the consent of the parties, the delivery of some thing is required. Even though the depositor hands over „the thing” to escrow agent in order to fulfill its obligations towards beneficiary under main agreement, in fact depositor surrenders „the thing” to the control of the escrow agent simultaneously acquiring a claim against escrow agent to hand over the deposited asset to beneficiary if previously established condition have come into existence106. The general assumption that in order for escrow agreement to be effective there needs to be a „surrender of dominion and control over the instrument by the depositor to the escrow agent”107, becomes not so self-bending in the case of software source c...