Escrow Agreement

In accordance with the principle of freedom of agreement adopted in most areas of Turkish law, the parties have the opportunity to freely create the content, parties and form of the agreement, until they remain within the limitations set in the legislation. Possibility to create a new type of agreement not found in the law is essential in terms of allowing the parties to keep up with the changing and developing commercial and economic life and to make contracts in line with their needs. The "escrow agreement", one of the anonymous agreements, which is an aspect of the freedom of contract, is the subject of our study. Escrow agreement; frequently used in contracts of sale,work and labor, service, construction, attorney, etc. It is applied in order to eliminate possible uncertainties that may occur during the performance of the contracts. Although the escrow agreement has completed its development in the USA and has taken its current form and become a frequently applied institution, its application area is almost non-exist in our country. By means of escrow agreement; it seems possible to dispose various risks which arise from the nature of concurrent covenants. To illustrate; in a contract of sale, the goods may be delivered without receivement of the price, or the price may be paid without the receivement of the goods. Additively; in an attorney agreement, client may be doubtful about the lawyer in terms of following the case as required or the lawyer may failure to collect his counsel fee. Similarly, in a construction contract; parties are in the expectment of performance of all deeds. The method used during these examinations is to determine the place of escrow agreement among the agreemnt types in the Turkish legal system and examine the structure, location of the agreement and whether it is applicable in our law by comparing it with similar agreements. While determining the aforementioned elements, the establishment of the contract, its functions, the rights and obligations of the parties, the performance of the deeds and the termination of the agreement were determined as the main examination points. In the study; it is tried to make a legal contribution to the solution of legal disputes in these areas in our country, to eliminate the possibility of cost, loss of time and loss of rights, and to increase trust in international relations, by making the escrow agreement more understandable and enforceable, Key Words: escrow agreement, deed of trust, contract of mandate, California Financial Code