counterparts
Definition
Counterparts means that multiple people can sign separate, identical copies of the same contract instead of everyone needing to sign the exact same physical paper. Each signed copy is considered equally valid and together they form one complete, binding agreement.
Example
You and your supplier in another state each sign your own copy of a distribution agreement, and both signatures together make the contract fully official without either of you mailing the document back and forth.
Watch Out
Make sure your contract includes a counterparts clause that explicitly states all the separate signed copies together count as one single agreement, otherwise some courts may question whether a valid contract was formed.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.