Newsletter-21

14 NEWSLETTER 2016 In light of the foregoing, while the escrow agreement contains the particulars related to the types of agreements regulated under the Code of Obligations, it is rather an innominate contract (mixed/sui generis contract) with distinct conditions. Conclusion If the mutual performance of the obligations arising from merger and/or acquisition agreement is not readily possible and contingent on certain conditions, securing such performance is satisfied by the escrow agreement. The escrow agreement serves as a substantial security tool. In the light of the foregoing explanation, it would be beneficial to make revisions in the relevant legislation to set out the escrow mechanism.