Which term refers to a process where funds are held by a disinterested third party until conditions are met?

The term that refers to a process where funds are held by a disinterested third party until specific conditions are met is "escrow." In an escrow arrangement, a neutral party holds the funds on behalf of the involved parties, ensuring that the money is only released when all agreed-upon terms and conditions of a contract are satisfied. This process provides safety and assurance for both parties, as it minimizes the risk of loss or fraud during transactions, commonly seen in real estate deals or business transactions where payments are contingent upon the completion of certain obligations.

In contrast, estoppel is a legal principle that prevents a person from arguing something contrary to a claim they have previously made, often concerning an issue of fairness. An executor is an individual appointed to carry out the instructions of a will after someone has passed away. An executory contract, meanwhile, is one that has not yet been completed or fully performed by either party. Hence, the correct answer emphasizes the importance of security and neutrality in financial transactions, which is encapsulated in the concept of escrow.