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.
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 ...
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.