A legal arrangement in which an asset (such as cash or stock) is deposited into an escrow account under the trust of a third party (the escrow agent) until satisfaction of a contractual contingency or condition. For example, in M&A transactions, buyers often require a portion of the purchase price be placed in escrow to secure post-closing obligations of the seller (such as purchase price adjustments and indemnification obligations). For an example of an escrow agreement for an M&A transaction, see Standard Document, Escrow Agreement.