The terms counterpart and counterparty are commonly used in the law but have very different meanings and it is important to distinguish between them.
A counterpart is a duplicate or copy of a legal document. If a contract is entered into by two parties, for example, two originals are often signed so that each party has in its possession one original, signed version of the contract:
“This agreement has been signed in two original, identical counterparts of which each party has received one.”
A counterparty, on the other hand, is one of the parties to a contract, transaction, trade, etc. In the above example, therefore, there are two counterparties:
“Both of the counterparties are required to sign the contract in order for it to be valid.”
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Hello, I received an e-mail from this topic (Counterpart x Counterparty), but I notice that on the board was written “counTYparty”.
Was it a mistake when he wrote on the board or IT IS another way of writing the word in question.
Thank you very much for all your helpful lessons.
Gilbert Costa.
It was a mistake, Gilberto and you are one of only two who have caught it. The board should have read: counterparty. Good eyes!