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HOW IT WORKS
How it works
Not every contract involves money. Sometimes you might simply want to exchange goods or services with another party in a trade. In those instances, it's a smart idea to use a Barter Agreement to make sure everyone knows what their responsibilities are.
Barter Agreements allow you to spell out exactly what is being traded and by whom. For services, you'll be able to note a specific task, job, or even hours spent working. For goods, you'll most likely want to include the quantity and conditions of the items in question.
While most people barter without an agreement, this can backfire down the line. On the one hand, like every contract, having the exchange on paper, signed by the parties involved, means everyone has to keep up their end of the bargain. But depending on your situation, items and services involved in a trade can in fact be taxable. For example, if you own a business and trade some of your stock to a contractor for work done, you're legally paying that contractor. Both parties should take care to include this trade on their yearly taxes. To do that, there's no better contract than a Barter Agreement.
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