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A barter agreement is a document outlining the exchange of goods or services between two parties without using money. It can serve as either a one-time arrangement or a recurring business contract for trading equal commodities. The video provides essential information about barter agreements and offers a free official template. Bartering, an even exchange of goods and services, predates modern currency systems and remains legal when conducted properly. Almost any item or service can be bartered if both parties agree on the terms, allowing individuals to trade unwanted items for those they need. The video includes examples of when a barter agreement might be beneficial for both parties involved.