Purchase Solution

Escrow Bond: What is it and how is it accounted for?

Not what you're looking for?

Ask Custom Question

Please help with the following business law-related posting.

Can someone help me understand escrow bond addition? For example, if I see an invoice from Aon Risk services posted to prepaid legal account, what is that for?

Please provide at least 300 words.

Purchase this Solution

Solution Summary

The following posting explains the concept of an escrow bond and speculates about the purposes of it as part of a law firm. There are also several well-explained situations where an escrow bond would be appropriately used. The explanation is given in 349 words.

Solution Preview

An escrow bond is a type of surety bond which is purchased to insure that a party to a contract complies with the terms of the contract.

Example: you have signed a contract for the purchase of an exercise club. Your deal won't close for 30 days but you are entitled to prepayments made by customers. Some customers pay 3 months in advance in order to receive a discount, and others pay 1 month in advance. As the buyer, you will be entitled to a large portion of those funds. Your ...

Purchase this Solution


Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.