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What is a Counterparty

A counterparty is one of the participants in a contractual agreement, representing one side of the deal. In any contract, there are typically two or more counterparties, each having specific rights, responsibilities, and obligations outlined in the agreement. The term can apply to individuals, companies, or other legal entities involved in the contract. Each counterparty is responsible for fulfilling their obligations under the contract, and they may face legal consequences if they fail to do so. Counterparties can be found in various types of agreements, such as business contracts, financial transactions, or partnerships.

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