An escrow agreement to hold funds is a contract between two parties where a third-party agent, called an escrow agent, holds and distributes money or property held in trust for the parties. The escrow agreement is designed to protect both parties involved in the contract by ensuring that the funds held in escrow will not be released until all obligations and conditions specified have been met. This type of agreement is often used in real estate transactions, when one party wants to ensure the other has fulfilled their contractual obligations. Escrow agreements help create a secure and mutually beneficial transaction environment for all parties involved.