Business

Barter Agreement

Non-monetary exchange contract between parties trading goods or services directly, establishing valuation methods, delivery terms, quality standards, and tax obligations for reciprocal transactions without cash payment.

Key Clauses

1

Description of Exchange

Details the goods or services each party will provide in the barter.

2

Valuation

Establishes the agreed-upon value of each party's contribution for tax and accounting purposes.

3

Delivery and Timeline

Sets deadlines and logistics for when each party must deliver their goods or services.

4

Quality Standards

Defines acceptable quality levels and inspection rights for exchanged items.

5

Tax Obligations

Acknowledges each party's responsibility for reporting barter income to tax authorities.

Use This Template

When You Need This

  • Two businesses want to trade services instead of paying cash
  • Exchanging professional skills or inventory with another company
  • Formalizing a goods-for-services swap to ensure accountability
  • Documenting barter transactions for tax compliance