Counterparty
A counterparty is the other party to a contract or transaction: from your side of the deal, the person or company that owes you performance and that you owe in return.
Updated November 5, 2026 · 1 min read
Counterparty risk
Counterparty risk is the chance the other side won't hold up its end, by not paying, not delivering or going out of business. Banks and traders measure it formally, but every business manages it: a deposit before ordering materials, a credit check on a new customer and progress payments on a long job all limit what you lose if a counterparty fails.
Counterparty or counterpart?
A counterpart is a copy of a contract signed separately. A counterparty is a party. A contract signed in counterparts has two or more counterparties, each holding a signed copy.
In SignMaster
When you send a contract, your counterparty is usually the signer. Put them first in the signing order and yourself last, so you countersign only after they've signed. When the last person signs, every party gets the same signed PDF and certificate of completion.
Questions? Answers.
Is a counterparty the same as a customer?
Often, but not always. Your counterparty is whoever is on the other side of a particular contract: a customer, a supplier, a subcontractor or a landlord.