A counterpart clause would generally be the same as “this contract may be performed in any number of equivalents, each representing a double original at the time of performance and delivery, but all the others together constituting a single agreement”. There is no clear agreement on this point. Most lawyers will therefore err on the side of caution and say that if two directors (or another combination of two authorized signatories) sign a document on behalf of a company, they must sign the same copy of that document. The section of the Companies Act, which deals with enforcement, deals with the execution of a document, Singular. Make sure that both parties sign the agreement and that the document is recognized by two witnesses or a notary for both parties who rely on the document to verify its credibility. During the rush of a transaction, documents may need to be signed in the equivalent. The absence of a counterparty clause does not in itself entail the invalidity of an agreement which the parties execute from separate counterparties. However, a counterparty clause may help prevent a party from claiming that an agreement is not binding because there is not a single copy of it signed by all parties or because it was unaware that it is cancelling a binding contract by signing an agreement that has not been signed by the other parties. In short, contracts and documents can usually be signed against a counterparty. The absence of a specific counterparty clause should not affect the validity of an instrument where an instrument has been executed in return.
However, such a clause may help to prevent another party from claiming that an agreement is not binding. They could argue that, in the absence of a counter-clause, they did not know that they would enter into a binding contract by signing an agreement that was not signed by the other parties. Signing the equivalent means that duplicate contracts or documents are printed, so there is a separate copy for signature by each party. The situation is opposite when a copy of the contract or deed is printed and signed by all parties. If you have many parts in different places, this is a useful tool to enable completion without having to distribute a single copy of a document to all parties for signature. Often, you see in the agreement a clause that allows signatories to sign it as equivalent. Some practitioners believe that an enforcement clause requiring the signature of two subscriptions can be signed by the other….