Third-Party Escrow Agreement

In this context, we are referring to an escrow agreement that is designed to make funds available for the purchaser of a business that the filer has sold. The purpose of such an agreement would be to protect the purchaser against unforeseen liabilities or expenses that arise after the sale but stem from matters predating the sale. At the end of a specified period of time, any unused funds will be returned to the seller. The agreement is a purely negotiated (i.e., non-standard) item in connection with the sale of a business and, as such, will vary from case to case; however, this section offers an example that may be modified to be applicable to similar situations or even other situations related to escrow agreements.


This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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