Contract Counterparty

Definition

Contract Counterparty. In the event that a contract identifies either party to that contract as being the principal, this is the other party to that contract

Where no party is identified as the principal to a contract, both or all parties are simply identified as being parties to the contract. That is, the concept counterparty, as defined here, is specifically in opposition to principal; other usages of the word counterparty exist.

Issues and Challenges

The parent concept of ContractParty is the one to use when no participant in the contract is identified as being the principal; where one entity is identified as being the principal to a contract, then the other party or parties to the contract are to be identified as counterparties. Note that the alternative usage of the term counterparty, being a given person's opposite number in some contract, is not the concept intended here, and those two concepts are disjoint.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.