Opinion ID: 1173466
Heading Depth: 3
Heading Rank: 1

Heading: Escrow Theory

Text: First, we consider the Kings' contention that the deposit of the documents and instructions with the Bank created an escrow to which they were parties. While there are no cases in Alaska for us to turn to, courts of other jurisdictions have established a fairly consistent body of escrow law. An escrow can be defined as a written instrument, which by its terms imports a legal obligation, deposited by the grantor, promisor or obligor with a stranger or third person, to be kept by this person until performance of a condition or happening of a certain event, and then to be delivered over to the grantee, promisee or obligee to take effect. Young v. Bishop, 353 P.2d 1017, 1021 (Ariz. 1960); Pike v. Triska, 165 Neb. 104, 84 N.W.2d 311, 321 (1957); Lechner v. Halling, 35 Wash.2d 903, 216 P.2d 179, 185 (1950). In order for there to be an escrow, there must be a contract between the parties. Security-First National Bank of Los Angeles v. Clark, 8 Cal. App.2d 709, 48 P.2d 167 (1935); Hoffman v. Eighth Judicial District Court, 90 Nev. 267, 523 P.2d 848 (1974); Cloud v. Winn, 303 P.2d 305 (Okl. 1956). The Restatement (Second) of Agency further explains an escrow. It states: An escrow holder ... differs from a person receiving property to be delivered to a third person, either gratuitously or otherwise, upon the happening of an event, ... but who makes no agreement with the third person.