Contract Type:

This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute an original of this Agreement, but all the counterparts shall together constitute the same agreement.

Click to Copy


This clause allows the agreement to be executed in separate counterparts rather than all parties signing the same physical document. Key points:

1) Counterparts: This refers to separate copies of the agreement that each contain the signatures of one or more parties. Each signed copy is referred to as a "counterpart".  

2) Any number: There is no limit on the number of counterparts that may be created and signed. As many counterparts may be executed and circulated as are needed to gather the signatures of all parties to the agreement.

3) Original: Each fully signed counterpart constitutes an original of the agreement with the same legal effect. No single signed master copy is required.

4) Together constitute the same agreement: Although signed separately and potentially containing different sets of signatures, when taken together the set of all counterparts represent a single, unified agreement and legally binding contract between the parties. The signatures from each counterpart combine to evidence the execution of the agreement by all parties.

5) Execution and delivery: For their execution in counterparts to be legally effective, not only must parties sign separate copies but those signed copies must be "delivered" to the other contracting parties according to the notice provisions in the agreement. Exchange and delivery of counterparts are required for the agreement to be fully executed and come into effect.

The key purposes and benefits of including a counterparts clause are:

1) Convenience and practicality: Allowing separate signing of counterparts avoids the logistical challenges of organizing all parties to sign a single version of the agreement in person at once. This can be crucial where there are many parties or those located in different places.

2) Valid and binding: Expressly providing for execution in counterparts and how they constitute an entire agreement makes clear that signing separate copies will result in a legally enforceable contract, with the same effect as all signing the same document. This avoids uncertainty and potential disputes over effectiveness.

3) Accommodates separate but unified contracts: Although signed separately, the clause confirms that all counterparts together represent a single agreement between the parties. No disagreement between terms in different counterparts is assumed or permitted.

4) Evidences intent for electronic signatures: Express reference to execution in separate counterparts indicates parties' intent for a valid and binding contract may be formed without a single signed "wet ink" hard copy but instead through exchange of digitally signed electronic versions. This makes electronic and virtual signing and storage of contracts possible.

In summary, a counterparts clause provides contractual certainty, convenience and flexibility. It confirms that executing the agreement through exchange of separate signed counterparts - whether physical or electronic, and regardless of their format or the signatures they contain - will result in unified, binding contract between all parties involved as if they had signed a single version. The clause prevents disputes over effectiveness and facilitates practical and technologically enabled completion of deals.

History of the clause (for the geeks)

Early commercial contracts required physical signing of a single master agreement by all parties, which was problematic as business dealings spread geographically. Logistically coordinating execution was challenging, and contracts could fail for want of all signatures or take effect only for certain parties where signed separately. However, as long as contracts were simple two-party documents and transport of copies an option, the need for clauses to expressly accommodate execution in counterparts was limited.

By the 19th century, infrastructure improvements and commercial expansion drove spread of multi-party agreements and contracts spanning distance, creating complications for execution as a unified physical document. Courts were reluctant to uphold separate signing or enforceability where master copies were not held. However, demand grew for more flexible options to avoid invalidity through impracticality.

The legal basis for execution in counterparts emerged in some jurisdictions, but amendments in contract were still needed to provide certainty. Standard formulas developed allowing for counterparts but requiring their exchange and providing that together they constituted a single agreement. Referring to each counterpart as an "original" helped convey intend for legal effectiveness, but approaches varied globally.

By the early 20th century, contracts increasingly provided for signing in counterparts to facilitate deals, especially for international and electronically circulated agreements or those with multiple parties. Clauses made clear that exchange of duly signed counterparts had the same effect as a single physical document, referencing the creation of a whole from parts. Counterparts were now "originals" and valid as combined, addressing previous uncertainty.

Today, counterparts clauses are commonplace, allowing not just for separate signing but also entirely virtual and electronic execution through exchange of digital counterparts. However, practical challenges remain around coordinating execution, preventing disputes between terms in counterparts, evidencing delivery, and accommodating electronic signatures laws where counterparts cross borders electronically. There is no single standard formula, but certain mechanisms have emerged to signal intent that any number of counterparts will constitute equally an entire, unified agreement.

In summary, commercial demand for more practical execution of increasingly complex deals has necessitated contractual mechanisms expressly providing for separate signing in counterparts and clarifying their effect as creating a single binding agreement when combined. Facilitating flexibility and validating virtual contracts have been key drivers of development. However, challenges persist in ensuring consistency and evidencing legally effective execution, especially electronically across jurisdictions.

Approaches continue evolving to suit transactions, but counterparts clauses have become crucial tools for overcoming logistical barriers and enabling completion of mutually beneficial relationships. Overall, the spread of counterparts clauses reflects efforts to uphold legal certainty while meeting practical realities of global digital trade.