1. the other party in a contract, agreement, or transaction; the person or entity on the opposite side of a deal.
Usage: commonly used in finance, law, and business contexts

Examples

• In the loan agreement, the bank is the lender and the borrower is the counterparty.
• The company assessed the creditworthiness of its counterparty before signing the contract.
• If the counterparty defaults on the swap, the bank may face significant losses.
• Both counterparties must agree to the terms before the transaction can proceed.
• The counterparty risk in derivatives trading is a major concern for financial institutions.
• She negotiated directly with her counterparty to reach a favorable settlement.
• The contract specifies the obligations of each counterparty.