Escrow Key is an agreement by virtue of which a depositor complies to relocate property to an escrow agent for the goal of fulfilling a depositor’s responsibility to transfer it to a different party in whose interest the property is deposited to the recipient or beneficiary. The escrow agent agrees to make sure that the property is safe and secured, and he also agrees to transfer it to the recipient if the conditions specified in the agreement arise.
The purpose of this contract is to make sure that an escrow agent or intermediary conducts property transfer to the beneficiary or recipient the conditional statements of the contract are fulfilled and occurred. Thus, the basic logic is encrypted data requires keys to access the information. The proponents’ position is manifested in the fact that the conditional satisfaction of the depositor’s obligation to the recipient using the escrow mechanism is performed by relocating the unit of the sender to the escrow agent, and then by the escrow agent to the recipient.
The depositor’s obligation to the beneficiary is deemed fulfilled as soon as the unit of property was delivered to the agent. In comparison, the escrow agent is not obligated to transfer the unit of property to the beneficiary in an unconditional manner. Instead, there is a need for fulfillment of all necessary conditions in order for the escrow agent to deliver the property to the recipient. In addition, there can be a date requirement, which is also considered as a part of the conditions. The opposition’s stance is that the required keys can be recovered, which means that a third party can access data.
This norm is imperative and represents an exception to the general rule, according to which the property right of the acquirer of a thing under a contract arises from the moment of its transfer. A legal fact sufficient to transfer ownership to the beneficiary is the occurrence of grounds for transferring things to him. The time of occurrence of such grounds is determined by the date, and not by a specific moment. It is important to note that the property will be recognized as the recipients as soon as the points of agreement were realized.
The process of property transition must be fully recorded in order to understand the potential reasons of loss or damage, in which case, the escrow agent is not held responsible. As a general rule, the escrow agent is responsible for the failure to keep the deposited things, unless he proves that it took place due to unexpected occurrences or because of the properties of things that he was not informed about and would not have known about when accepting them for a deposit, or as a consequence of negligence from the depositor’s side.
Few of the many implementation names are Bell Atlantic Yaksha System, Bellare-Goldwasser Time Delayed Key Escrow, Bellare-Goldwasser Verifiable Partial Key Escrow, Bankers Trust Secure Key Escrow Encryption System, and AT&T Crypto Backup. The given system can be considered as a failure since its inception because it cannot provide foolproof security. It is clear that there is an accidental loss risk of property, which needs to be addressed beforehand by the sender. If such precautions were not undertaken by the depositor, he or she has no right to demand obligatory fulfillment of the obligations.