In plain English
In a contract, each side has an opposite side. This term names that other party in the same agreement. The other party may be a person, a company, or another organization.
In context
In this context, counterparty denotes the other person, company, or organization in the same agreement.
- Situation
- Reading agreement sections, parties, dates, signatures, and execution status
- What it communicates
- identifies the other side of the agreement in the workflow or document.
Meaning limits
The term by itself does not say how many parties the agreement has overall or what obligations or status that other side has.
Examples
“Once Lina accepted the service contract, the repair company became her counterparty.”
“The buyer sent the signed agreement to the counterparty by courier.”