Do you want to trade your products and services? Use a barter agreement! 🎉
What’s a barter agreement you ask?
It’s when a business trades its products or services with another business. No actual money is exchanged. Instead, each party gets the benefit or value of the other party’s products or services without it directly hitting their bottom line.
But considering that money is not being exchanged there can be even more to lose if things do not go as planned. For example, you don’t want to end up in a dispute over what was exchanged and who owes what.
You have to be mindful of the value of what is being exchanged. A barter agreement makes it clear what each service or product being exchanged is worth.
If you are exchanging a $500 service for a dozen $25 t-shirts, state the total fair market value of each and then each person signs the agreement acknowledging those amounts.
This way both parties are in agreement about what is being exchanged and for what value so there is no confusion later.
So if you’re interested in bartering with another business, don’t do it without covering the legal aspects first.
Use a Barter Agreement Template
Bartering has been in existence forever and for good reason. It’s a simple way to conduct business without actually paying for things. But! As great as bartering sounds, you must be protected.
To get the full value of your bartered products or services, use a Barter Agreement. This template will cover the specifics of what is being traded, its fair market value, the date of transfer and more.
Enjoy the time honored tradition of bartering in modern day business with an attorney-drafted barter agreement.
My Template contains:
- Products or Services Provided
- Fair Market Value
- Intellectual Property Ownership
- Limitation of Liability
- Quick Instruction guide with tips
- And more!
If you’re interested in bartering in your business, take a look at my Barter Agreement Template and start trading with legal protection.
This blog posting is provided for general informational and educational purposes only and is not provided for specific, individual legal advice.