What is a barter agreement, or the popular “barter”? Is it regulated directly in Polish law? Can barter be applied in classical business transactions?
Barter is historically one of the oldest forms of trade, practiced before money was even used as a means of payment. It simply involves the exchange of services or goods, without the use of money.
Nowadays, the barter contract is one of the forms of cooperation chosen by businessmen, each of whom is able to offer the other a good or service in exchange for another good or service.
What is a barter agreement, or so-called barter?
The colloquially used term “barter” means nothing more than a mutual exchange of goods or services between parties. Thus, the primary purpose of a barter agreement is the mutual exchange of goods between the parties, without the use of money.
In such an agreement, the parties first determine the value of the goods, which they then offer to each other. The mutual benefit of the parties can thus take the form of the following combinations:
What should a barter agreement regulate?
Each party to a barter contract is both a “seller” and a “buyer.” It can be concluded not only between businesses, but also between a businessman and an individual, or even between two individuals.
It is necessary to specify exactly what services or goods are exchanged between the parties. It is also good to include in the contract information such as the quality, quantity and, above all, the value of the goods offered by the parties for mutual exchange.
They should be specified in detail to avoid misunderstandings that may arise over time during the execution of the contract. It is worthwhile to regulate, for example, the liability for possible defects in the item (if the subject of the exchange is a goodtermin realizacji umowy
This is the date by which the parties are obliged to fulfill their obligations under the content of the barter agreement – that is, to perform the service or release the goods.
Other equally important elements of the contract are the date and place of conclusion of the contract, the conditions of possible withdrawal from the contract or the consequences of non-performance or improper performance of obligations.
Is the barter agreement regulated by Polish law?
A barter agreement is an unnamed agreement, i.e. one that has not been directly regulated by the Polish legislator in the law. However, according to established case law, it has similar effects to a contract of exchange, which is regulated by the Civil Code.
When interpreting a barter agreement, we should apply the provisions of the Civil Code on a swap agreement and a sale agreement, as well as the regulations of the general part of the law of obligations, respectively.
In what situations is a barter agreement entered into?
A barter agreement is strongly associated with the influencer industry. For example, an influencer agrees to post several photos on his social profile wearing jewelry or watches from company X (that is, he provides advertising services), and in return, instead of monetary compensation, he receives such watches or jewelry on his own.
However, one can confidently find an application for a barter agreement in professional business. It is not difficult to imagine a situation in which, for example, an accounting firm undertakes to provide accounting services to a particular law firm for X hours per month (or X documents per month), and in return the law firm provides legal assistance to the accounting firm for Y hours per month. This is an exchange of service for service, on a barter basis, without the use of money.
Thus, a barter agreement will be a suitable solution for transactions in which, for various reasons, we consider it more appropriate to settle for goods or services rendered without the use of money.
In what situations is a barter agreement entered into?
A barter agreement is strongly associated with the influencer industry. For example, an influencer agrees to post several photos on his social profile wearing jewelry or watches from company X (that is, he provides advertising services), and in return, instead of monetary compensation, he receives such watches or jewelry on his own.
However, one can confidently find an application for a barter agreement in professional business. It is not difficult to imagine a situation in which, for example, an accounting firm undertakes to provide accounting services to a particular law firm for X hours per month (or X documents per month), and in return the law firm provides legal assistance to the accounting firm for Y hours per month. This is an exchange of service for service, on a barter basis, without the use of money.
Thus, a barter agreement will be a suitable solution for transactions in which, for various reasons, we consider it more appropriate to settle for goods or services rendered without the use of money.
Running a business is often connected with concluding B2B agreements. This phrase can be seen on numerous occasions, but is always tied to the entrepreneur – which can run their business in the form of a sole tradership, a partnership or a company. What is hiding under B2B then?
