Elements of a Barter Agreement

Barter has been around as long as human beings have traded and swapped with each other. While people today still trade objects or favors with friends, a barter agreement can put the swap on a contractual, legally binding basis, whether you're swapping Web design for free car repairs or free advertising for fresh fish.

Something to Trade

Both parties to an agreement must have something the other wants. It can be items, such as paint, produce from your garden or unsold beauty products from a business. It can also be services, such as babysitting, hairstyling, auto repair or Web design. Websites will sometimes swap advertising space with each other. The only thing that can't be bartered is money.

Specifics

Both parties should be clear about the terms of the barter agreement they're negotiating. Instead of making assumptions about what the other person has agreed to swap with them, the parties should discuss the quantity and quality of any goods being traded, how many hours of services will be bartered and what will happen if either party is dissatisfied.

A Written Document

The hard copy of the barter agreement puts all the details of the swap down in print. It will spell out exactly what is being traded, and specify how long the parties have to ask for corrections. A good barter agreement also specifies penalties or backup arrangements if one party fails to deliver on what they've promised.

References

• Article on barter agreements