Business bartering is a common practice among many companies. It’s especially frequent between small businesses, start-up companies and freelance workers. These agreements provide significant advantages. Each party receives a benefit in the situation, typically without investing money. These agreements can be an exchange of goods, an exchange of goods for services or services for services. Usually, money isn’t involved unless the value of one item is significantly greater than the value of the other item or service.
Bartering is commonly used in e-commerce situations. One party may not have knowledge about how to set up websites, online transactions and social media accounts. The other party may have extensive knowledge about ecommerce issues but needs a type of support or product that the other party offers. This is a frequent modern scenario in bartering agreements.
What happens when these agreements go wrong and only one side fulfills the agreement? This is a common business law problem. In most cases, people are honest and follow through on their commitments, but there are instances when the other party deceitful or dishonest and puts you in a difficult position. Often, people don’t realize they have protection under business law in these situations. The agreement between the parties constitutes a contract and breaking a contract has legal repercussions.
Bartering is often informal. The two parties make an arrangement and often don’t write the agreement down. In other cases, they download contracts from the internet to solidify the agreement. However, if the agreement goes awry, a business law attorney can help you address the repercussions of the broken contract. If the bartering agreement involves significant amounts of time, products or services, it’s a good idea to consult with a business law attorney at the beginning of the process. This will help you ensure that your contract is thorough and protects you in problematic situations.
If you anticipate problems in the future with the agreement, it’s critical that you work with a business law attorney. The attorney can help you understand your liability and repercussions under your state’s business law regulations. The business law attorney can help you thoroughly document the transaction so that you have evidence in case of problems down the line.