Updated June 22, 2023
A barter agreement outlines a trade of goods or services without the use of money. This type of arrangement is common between two (2) parties that are repeatedly transacting business with each other. A barter agreement can either be a fixed agreement, where both parties are required to deliver by a specific date, or an ongoing arrangement.
Table of Contents |
Common Types (7)
- Advertising – Ad placements.
- Hotel/Hostel – Renting of rooms in exchange for a service or product.
- Labor – Manual work.
- Medical – Healthcare-related services.
- Rent – Providing stay for work conducted on the property.
- Teaching – Helping students learn.
- Vehicle – Selling a vehicle, motorcycle, or boat.
How to Make a Barter Agreement
A barter agreement is made between two (2) parties that agree to the fair market value of each other’s goods or services. Once agreed upon, the quantity and delivery date must be reached and the document is ready to sign.
Step 1 – Make a Verbal Agreement
It is best to make an agreement upfront of what each party will provide. For example, the most popular type of barter is a hotel owner trading goods or services for the renting of a room. Due to the high hotel taxes, this is a common way to avoid paying merchant fees.
Step 2 – Select Arrangement Type
A barter agreement can be set up in two (2) ways:
One (1) Time Use – The agreement acts as a bill of sale and is completed upon the delivery of the bartering items by both parties.
- Example: A vehicle is exchanged for the installation of a new roof. Once the roof has been installed, the vehicle is exchanged.
Ongoing Situation – The agreement remains valid and the bartering offerings are exchanged until terminated by one of the parties.
- Example: Painting services are exchanged for rent. A painter agrees to paint the properties of the landlord in exchange for rent at the painter’s apartment.
Step 3 – Write and Sign the Agreement
After the terms have been agreed upon it’s time to put the ink to paper and sign the agreement. After signing, both parties will be legally bound to perform and deliver the goods and services mentioned.
Step 4 – Termination
If the barter was a single transaction, the agreement ends when both parties have exchanged their products. If for an ongoing situation, one of the parties will need to send a termination letter (see below) canceling the agreement.
Barter Agreement Termination Letter – Notice that is given to another party to terminate an ongoing barter arrangement.
Download: PDF, MS Word (.docx), OpenDocument
Sample
BARTER AGREEMENT
I. THE PARTIES. This Barter Agreement (“Agreement”) made this [DATE], made between the following:
PARTY A: [NAME OF PARTY A] with a Street Address of [ADDRESS], (“Party A”) and
PARTY B: [NAME OF PARTY B] with a Street Address of [ADDRESS], (“Party B”).
Party A and Party B shall collectively be known as the “Parties” and agree to exchange goods and/or services as agreed-upon below:
II. THE OFFERING. The Parties agree to exchange each other’s goods and/or services for the monetary values ($) described below:
Party A Offers: [DESCRIPTION]
With a monetary value ($) of: [AMOUNT]
Party B Offers: [DESCRIPTION]
With a monetary value ($) of: [AMOUNT]
Hereinafter known as the “Offerings” and each Party agrees to adhere to the above-mentioned monetary value for the Offerings as final. The monetary value of the Offerings has no connection to its fair market value.
III. DELIVERY OF GOODS. The delivery of the Offerings shall be: (check one)
☐ – On a Specific Date. The Offerings shall be exchanged and delivered by each party on or before [DATE].
☐ – For an Ongoing Arrangement. The Offerings shall be exchanged for an ongoing arrangement until terminated by either of the Parties. If any of the Parties shall terminate this Agreement, any outstanding Offerings shall remain owed. Termination of this Agreement must be done in writing and to the mailing address mentioned in Section I.
IV. GOVERNING LAW. The Parties agree that this Agreement shall be governed under the laws located in the State of [STATE].
V. EXCHANGE OF GOODS. The Parties agree to deliver the Offerings on the agreed-upon timeframe mentioned in Section III. Any changes must be agreed to, in writing, by both Parties. Party A and Party B represents that they both freely and legally entered into this Agreement.
VI. RIGHTS TO OFFERINGS. Each party represents the following:
a.) Goods. If goods are exchanged in the Offerings by either of the Parties, that they can be transferred legally and are free of any liabilities or encumbrances. In addition, such goods shall be able to be resold at a later time.
b.) Services. If services are exchanged in the Offerings by either of the Parties, the service being provided can legally be carried out under Local, State, and Federal law. Furthermore, such services shall be considered complete when it has been deemed acceptable by the receiving party in accordance with industry standards.
VII. HOLD HARMLESS. The Parties shall indemnify each other including its officers, agents, assigns, contractors, subcontractors, and employees, from and against any and all claims, demands, suits, losses, liabilities, and costs including attorneys’ fees arising out of any alleged breach of this Agreement.
VIII. ADDITIONAL TERMS & CONDITIONS. [DESCRIBE]
IX. SEVERABILITY. If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.
X. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.
IN WITNESS WHEREOF, the Parties have indicated their acceptance of the terms of this Agreement by their signatures below on the dates indicated.
Party A Signature: _____________________ Date: ___________________
Print Name: __________________________
Party B Signature: _____________________ Date: ___________________
Print Name: __________________________
How to Write
Download: PDF, MS Word, OpenDocument
Step 1 – Acquire Your Copy Of The Barter Agreement In One Of Three Formats
Download the template agreement defining a barter using any of the buttons beneath the sample image. Notice each button (“PDF,” “Word,” and “ODT”) has a corresponding text link above (“PDF,” “MS Word,” and “Open Document”). You may use any of these items to download the template necessary to solidify a bartering agreement.
Step 2 – Produce Documentation Of The Effective Date
Several statements must be declared to solidify a bartering agreement. This document will divide these declarations by topic. Some of these articles have been developed to function as is while others will need information supplemented to be applied to the two Parties involved. The first article, “I. The Parties,” displays a blank space preceding the number “20” and another following it. Produce the month and calendar day this Barter Agreement becomes effective on the space preceding this number. 
The space immediately following the number “20” requires the two-digit year in this contract’s effective date. 
Step 3 – Introduce The First Bartering Party
The declaration in “I. The Parties” continues to the label “Party A.” This agreement requires that each Party engaged in this barter be identified to their roles. As a quick reference, the first Party we identify will be Party A. The blank line that follows this bold label requires the full name of one of the Bartering Parties while the second space (after the term “Street Address Of”) requires the building number, street, and apartment number of this individual’s (or entity’s) business address. 
The remainder of Party A’s business address should be recorded across the two blank spaces to the right of the terms “City Of…” and “State Of…” respectively. 
Step 4 – Identify The Second Bartering Party
The second Bartering Party of this trade will also need to be solidified for this document to hold him or her responsible to its content. Thus, continue through “I. The Parties” to the next bold label “Party B” where the name of the Second Bartering Party must be presented. This statement will also seek the “Street Address” Party B prefers used for his or her business address. 
Continue with Party B’s information by recording this entity’s city and state on the lines after “City Of…” or “State Of…” 
Step 5 – Furnish A Description Of Party A’s Offer
Naturally, in a barter situation with two Parties (A and B respectively) at least two pieces of property will be involved. Thus, a list of Party A’s barter items must be produced along with that of Party B. In “II. The Offering” all items being exchanged should be detailed to be attached to its current Owner. Locate the term “Party A Offers” then list every piece of property this individual or entity is offering to Party B. If the property can be identified with an official product number (i.e. a manufacturer I.D. number, VIN, plot number, etc.) then list such information when available.
Step 6 – Attach The Monetary Value Of Party A’s Barter
The next area in “III. The Offering” also serves to describe Party A’s contribution to this trade. Add the value of all items and properties involved in this barter then record this dollar amount after the words “With A Monetary Value ($)” 
Step 7 – Define Party B’s Barter
As indicated earlier, Party B’s property will need to be listed for review. After the words “Party B Offers,” list all the barter items Party B will trade with Party A as a result of this trade 
Step 8 – Display The Barter Value For Party B’s Offer
The value of Party B’s barter items should be listed as well. The line attached to the words “With A Monetary Value” will accept this value or values for display. 
Step 9- Discuss The Delivery Of The Bartered Goods
The manner in which each Party delivers its goods to the other will be the next topic that bears discussion and requires attention. Continue through this document to the section titled “III. Delivery Of Goods.” Two checkbox choices are on display in this article to aid in this definition. Only one of these can be selected as documentation for each Party’s delivery of barter items. If all barter items must be submitted “…By Each Party” from the appropriate Party, then mark the box labeled “On A Specific Date.” 
This selection means that the month, two-digit calendar day, and two-digit calendar year of the barter deadline must be entered across the two blank spaces on display. 
If the two Parties intend for this trade to be an ongoing one, then mark the second checkbox “For An Ongoing Arrangement” to be set for this barter. That is, the items or services being traded will continue until this is terminated by either Party. Keep in mind that if there are any owed barter items at the time of cancellation, the remaining barter items will still be considered owed. 
Step 10 – Report The State Jurisdiction Ruling The Barter
The state where this document would be reviewed if challenged must be declared. Find the article label “IV. Governing Law,” then generate the name of this state on the blank line in the statement displayed. 
Step 11 – Discuss The Remaining Provisions To This Contract
The eighth article in this document remains open-ended in that it enables a direct report on any remaining topics that Party A and Party B have agreed to and intend to use this paperwork to obligate the other to live up to. Produce this on the blank lines directly under the article label “VIII. Additional Terms & Conditions.” 
Step 12 – Party A Requires An Executing Signature
The first Bartering Party, referred to as Party A above, is expected to sign his or her name on the line “Party A Signature.” This will display Party A’s willingness to adhere to the bartering agreement we have discussed. After this signature, Party A should also verify the “Date” that he or she acknowledged (by signature) the terms above by entering the calendar month, day, and year of the signing on the “Date” line. 
Once done, Party A can finalize his or her part in this document’s execution by printing his or her name on the “Print Name” line. 
Step 13 – This Paperwork Must Be Completed With Party B’s Signature
The second Bartering Party discussed above, named Party B, also carries an obligation to sign this paperwork in order for it to become an effective document that exerts power. The signature area that closes this document begins with the “Party B Signature” and “Date” lines. Party B must sign his or her name on the former then produce the current “Date” on the latter. 
Party B must print his or her name on the line attached to the “Print Name” label to solidify his or her identity and dated signature. 