Legal Definitions - in aequali manu

In aequali manu is a Latin legal phrase meaning "in equal hand." It describes a situation where an asset, document, or property is held by a neutral third party, not favoring any single party involved. This third party holds the item impartially, ensuring it is equally accessible or controlled by all interested parties until specific conditions are met or a dispute is resolved.

• Real Estate Transaction: When someone buys a house, the buyer's down payment and other funds are often placed into an escrow account managed by a neutral third-party escrow agent.

  The money is held "in aequali manu" because it is not directly given to the seller, nor does it remain fully with the buyer. The escrow agent holds the funds impartially for both parties until all conditions of the sale (like inspections, financing, and title transfer) are satisfied. This ensures neither party has exclusive control over the funds before the deal is finalized, protecting both buyer and seller.

• Dispute Resolution: Two businesses are in a legal dispute over a contract, and they agree to place a disputed sum of money into a special account managed by an independent arbitrator.

  The funds are held "in aequali manu" by the arbitrator. This means the money is not under the exclusive control of either business. The arbitrator holds it neutrally until they make a decision or the parties reach a settlement, ensuring the funds are distributed fairly according to the resolution without bias towards one side.

• Business Collaboration - Digital Asset: Two software companies collaborate on a new product and agree to deposit the core source code into a secure, third-party code escrow service.

  The source code is held "in aequali manu" by the escrow service. Neither company has sole access or control over the complete code base. The service acts as a neutral custodian, releasing the code only under pre-defined conditions (e.g., if one company goes bankrupt or fails to meet its obligations), ensuring fair access and protection for both partners.