Necessity of Valid Contract to Support Escrow - In Foulkes V. Sengstqcken, (Ore. 1917) 163 Pac. 311, it is said that "A pure escrow presupposes the existence of a valid contract with sufficient parties, a proper subject matter, and a consideration. There must be an actual contract of sale on the one side and of purchase on the other, afid until there is such a contract, the instrument executed by the supposed grantor, though in form a deed, is neither a deed nor an escrow." Accordingly it was held that performance of conditions by a grantee after the grantor had withdrawn the instrument from the custodian was ineffective to accomplish a conveyance. In its decision the court follows Davis v. Brigham, 56 Ore. 41, io7 Pac. 961, Ann. Cas. 1912B 1340, where the same doctrine, though probably not necessary to the decision, was laid down.
Ralph W. Aigler, John B. Waite, William L. Owen & Samuel D. Frankel,
Note and Comment,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol15/iss7/5