Our Studio Barter Agreement is extremely important in protecting your services when entering into an exchange situation with another individual or business. This agreement outlines what will be exchanged in terms of value, delivery logistics, deadlines, and a series of simple clauses to ensure both parties are compensated equally and fairly. English verb TO BARTER conjugated in all forms, with full audio, irregular highlighting, negative forms and contractions.
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In the past, barter agreements were a popular way of paying for items or services without money. If a person wished to purchase something from someone else, he would trade an item or service of his own for what he needed. For example, if one man had a milk cow and another man had chickens, they could trade milk for eggs using a barter agreement. Often the individuals sealed their agreement with a handshake but if you are considering creating a barter agreement today, you should write the details down in a contract to protect your interests.
1.Calculate the value of the goods or services you and your bartering partner are offering. Consider not only the monetary value, but also the exclusivity of the items. If you cannot obtain an item or service elsewhere, the value of the item increases.
2.Negotiate with your bartering partner to create the terms of your agreement. For example, if you are offering to perform mechanical work in exchange for lawn care, how often will the person mow your lawn to pay you for repairing his car. Decide who will pay for any necessary automobile parts and gas for the mower.
3.Write a contract specifying the details you and your bartering partner decide. The contract can be as simple as each of you listing the details, dating the agreement and signing it or, in the case of two companies bartering services, as complex as you need.
Tip
- Consult an attorney when writing a complex barter agreement if you are unsure about the legality of the barter.
Warning
- The Internal Revenue Service considers barter transactions as taxable income. You may owe taxes from bartering if the market value of what you received is more than the value of what you gave.
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About the Author
Specializing in business and finance, Lee Nichols began writing in 2002. Nichols holds a Bachelor of Arts in Web and Graphic Design and a Bachelor of Science in Business Administration from the University of Mississippi.
Cite this Article Choose Citation Style
Nichols, Lee. 'How to Create a Barter Agreement.' Small Business - Chron.com, http://smallbusiness.chron.com/create-barter-agreement-16623.html. Accessed 26 June 2019.
Nichols, Lee. (n.d.). How to Create a Barter Agreement. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/create-barter-agreement-16623.html
Nichols, Lee. 'How to Create a Barter Agreement' accessed June 26, 2019. http://smallbusiness.chron.com/create-barter-agreement-16623.html
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![Barter Barter](/uploads/1/2/3/4/123437461/678169506.jpg)
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