Escrow Agreement Entered Into This Day Of: Fill & Download for Free

The PSAT contract is pretty straight forward.You can legally enter into a contract as a minor, but you are also permitted to void that contract after the fact, if you are a minor.A contract is:Offer— by the college board to provide the PSAT test and scoringAcceptance— by the studentMutual obligation— There are two of these involved:The student will pay for and take the testThe College Board will administer the testThe student agrees to abide by the PSAT contractThe College Board agrees to certify the student’s scoresConsideration— There are two of these as well:The student actually pays for the testThe College Board provides a testing scenario (it administers the test, if the student shows up, but has met its obligation to provide consideration already)If the student abides by the PSAT contract, the College Board certifies the student’s scores (this is conditional consideration)Competency and capacity— The student is legally able to enter into the agreement; this is true in the U.S.; just because the student can void the contract later, doesn’t mean they can’t enter into it in the first placeThe College Board is only required to certify the results if all the conditional parts of the contract leading up to certification are satisfied.I think the part that most people miss is that there’s a distinction between being able to legally enter into the contract, and whether or not one can simply void the contract later.In the U.S., a minor can void the contract later; an adult can’t.What this means is that, unless the goods or services are provided in such a way that the minor satisfies all their parts before the other party is required to satisfy all of theirs — most people are reluctant to enter into contracts with minors.Let’s take a situation which is pretty commonly asked about on Quora.A minor wants to start a company, such as a software App company, and wants to contract the services of software engineers to write an App for them, which they themselves are incapable of writing:So they contract the services.The software engineers deliver the App.Then the minor voids the contract.The software engineers don’t get paid.That’s payment after delivery: delivery wasn’t contingent on payment. You’d have to be really, really dumb to contract with a minor where that was a possibility.This is why children have a hard time starting companies, unless they are wealthy in themselves, and set up escrow accounts so that the payments are contingent on things which can’t be voided.Even then, the situation “feels hinky” to most people.This is why cell carriers won’t enter into contracts with minors: it’s payment after delivery of the cell phone hardware, and of the cellular services.In the PSAT case, however, delivery of the certified results is contingent on:PaymentAppropriate behaviour (i.e. adherence to the PSAT contract)If the student fails to meet one or both conditions, the contingent delivery — the certified results — are not required to be “paid” by the College Board.So you can take the tack that the PSAT contract “doesn’t work”, and that’s fine if you do — but then you don’t get your certified test results.Non-payment?No certified test results.Cheating?No certified test results.Get the picture?At the end of the day, the College Board has something you want, and even if you wanted to void the contract, doing so exempts them from their end of delivery on the contingent part of the contract.

Enter into contract to purchase a given piece of land. Make sure the contract can be assigned to a 3rd party buyer.During your escrow period, enter into a purchase agreement with a 3rd party buyer to purchase your interest in the contract.Either assign your interest in the contract prior to the closing date of the original contract, or coordinate the closing of both contracts on the same day.This strategy is employed by some very savvy developers. For example:Developer X enters into an agreement with a land owner to purchase 1 acre of raw land, with no development rights, for $100,000. Developer X also negotiates a 12 month escrow period meaning they do not have to close on the property until 12 months from the date the contract is signed.During this 12 month period, Developer X puts together a development plan and obtains approval from the government to build a 100 unit high rise on the property.Developer X finds Developer Y who has been searching for land to build a 100 unit high rise. Developer Y is willing to pay $1,000,000 for that 1 acre of land.Developer X enters into an agreement with Developer Y to assign the purchase agreement to Developer Y for $900,000. Developer Y closes the deal with Developer X and subsequently pays the original land owner $100,000 at the agreed upon close of escrow date.OR, Developer X and Developer Y enter into an agreement to close their deal concurrent with Developer X's deal with the original landowner. Developer Y pays Developer X $1,000,000 of which $100,000 passes through to the original land owner thru escrow.So why wouldn't Developer Y circumvent the middleman, Developer X, and cut a deal with the original land owner? The primary reason is that obtaining approval from the government to develop property is never easy. It is a specialized skill that requires a lot of time, money, political savvy and significant risk tolerance. Most developers just want to build, they don't want to spend three years attending community meetings and conducting traffic studies, endangered species surveys, and testing for environmental contamination.In addition, land markets fluctuate rapidly, and Developer X may simply have been ahead of the curve. For example, once a location has been deemed "hot" (e.g., Brooklyn, NY, Venice Beach, CA, Austin, TX, etc.), large companies are pressured to purchase assets in those markets. The Developers with the vision to see those areas as up and coming and with the foresight to tie up property, could sell their out of their positions for a significant multiple within a matter of months.

I sold a domain name that is a common English word, and so it had a high value.I agree with David Friedman. You could use an escrow service. But if you are not dealing with a six figure jackpot, I really don’t feel that it is necessary. In our case, the buyer and seller asked a staff member at GoDaddy to stay on the line and ensure the transfer immediately after I confirmed receipt of payment.*Just be certain that you have a signed letter agreement that states these things:Identities of buyer and sellerTitle/authority of those representing any organizationsState exactly what the sale includes (Just domain—or does it include good will?)What if an angry customers sues the buyer? (i.e. someone angry with an earlier projects associated with the previous owner)? The buyer will reasonably ask for indemnification. Agree to this.On the other hand, be sure that the agreement stipulates that the buyer is responsible for determining suitability, fitness and due diligence. You cannot be expected to guaranty value or that he will develop it profitably.State thate the sale is absolutely final. Depending upon jurisdiction, laws may trump this stipulation with a 3 or 5 day right of rescission, but at least this places an end-date on the potential for backing out of the transaction.If it involves more money than the cost of your next car, consider finding a lawyer and doing it with representation (or at least find a good tutorial on contract law). He/she will want to add legal boilerplate. For example: “I enter into this contract as a free act and deed” and “if any article of this agreement is found to be illegal it will not lessen or annul the agreement represented by other article.” etc.* Recourse…Of course, the seller might lie and claim that he did not receive payment—or the buyer might lie about sending payment. If you believe that either of these things are possible, then ask the domain registrar/representative to briefly take the password or transfer authority into his own hands.In my case, we didn't need to do this. I simply shifted the domain into an unused account and changed the organization name and contact information. Once I was certain that the buyers payment had cleared, I gave the account information to the new owner.