Legal Definitions - counterletter

A counterletter is a legal document used in civil law where the parties involved in a simulated contract record their true intentions. It is used to acknowledge the actual ownership of a property or to clarify the true intentions of the parties involved in a contract. However, a counterletter has no effect against a third party acting in good faith.

For instance, if the record owner of a real property acknowledges in a counterletter that another person actually owns the property, the counterletter may be used when the property is to be reconveyed after a period. This means that the true owner of the property can reclaim it after the agreed period, even if the record owner has sold it to a third party.

Another example is when two parties enter into a contract, but they have different intentions. They can use a counterletter to clarify their true intentions and avoid any misunderstandings in the future.

These examples illustrate how a counterletter can be used to record the true intentions of the parties involved in a contract or property ownership. It is a legal document that helps to prevent fraud and misunderstandings in the future.