Escrow Agreement
Professional Escrow Agreement template for Indian commercial transactions covering deposits, holding obligations, release conditions, defaults, and dispute handling with a neutral escrow agent.
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What is a Escrow Agreement?
An Escrow Agreement template for Indian commercial deals that appoints a neutral escrow agent, defines deposit and release mechanics, and manages default and dispute scenarios for safer settlements.
When should you use this?
Common situations where this document is the right choice.
What's included
Key sections and clauses in this document.
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Frequently asked questions
Everything you need to know before creating your document.
Can a bank, law firm, or fintech platform act as escrow agent under this template?+
Yes. Any suitably regulated or trusted entity can be defined as the escrow agent, provided its internal policies allow escrow operations and the roles and fee arrangements are clearly documented.
What happens if the Depositor and Beneficiary give conflicting instructions?+
If there are conflicting instructions, the template allows the escrow agent to hold the funds until it receives joint instructions or a final order or arbitral award, and in some cases to pay the funds into court and seek discharge.
Is it necessary to reference the underlying transaction agreement in the Escrow Agreement?+
It is strongly recommended to reference the underlying agreement (e.g. share purchase, asset sale, or services contract) so that release and default conditions are clearly tied to that contract and the documents can be read together.
Can disputes under the Escrow Agreement be referred to arbitration?+
Yes. The template includes a configurable clause to opt for arbitration under the Arbitration and Conciliation Act, 1996, with a specified seat, or to use court jurisdiction instead, depending on party preference.
Are electronic signatures valid for executing the Escrow Agreement?+
In India, agreements executed using valid electronic or digital signatures recognised under the Information Technology Act, 2000 are generally enforceable, provided the usual elements of a valid contract are satisfied.
Legally valid
Compliant with Indian law
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Escrow Agreement