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A barter agreement facilitates the exchange of goods or services between two parties without monetary transactions. This can be either an ongoing business contract or a one-time trade of equal value. The video discusses key aspects of barter agreements, including how they work and where to find a free official template. Bartering, which predates the modern monetary system, remains a legal practice if conducted properly. Nearly any item or service can be bartered if both parties agree on the terms. Bartering can be advantageous, allowing individuals to trade unwanted items for those they need. Examples of when to use a barter agreement are also explored in the tutorial.