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Contract Glossary

Counterpart

Definition

A counterpart clause lets each party sign a separate copy of the contract — and together, those copies count as one agreement. You sign your copy in Berlin, they sign theirs in São Paulo, and you've got a deal.

In Practice

You're closing a partnership agreement with someone in another country. A counterpart clause means neither of you needs to be in the same room. You each sign your own copy (or better yet, use DocuSign), and the two signed copies together form one binding contract. Without this clause, some jurisdictions might argue both parties need to sign the same physical document. Counterpart clauses became essential with the rise of remote business. Before electronic signatures, deals required all parties to physically gather and sign one document. Today, a counterpart clause paired with an e-signature provision means a company in London and a vendor in Tokyo can finalize a contract in minutes. The clause also explicitly validates PDF and electronic copies, closing any legal gap about whether a digital signature on a separate copy carries the same weight as wet ink on the original. In practice, you should keep all signed counterparts on file — if a dispute arises, being able to produce your signed copy and the other party's signed copy as a complete set is important evidence that a binding agreement exists.

Example Clause

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart by electronic transmission (including PDF or electronically signed copies) shall be equally effective as delivery of a manually executed counterpart.

Frequently asked questions about counterpart

Yes, in most jurisdictions. The U.S. ESIGN Act, the EU eIDAS regulation, and similar laws in most countries recognize electronic signatures as legally equivalent to handwritten ones. Combine a counterpart clause with e-signatures and you can close deals from anywhere.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.