Contra deal: Difference between revisions
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'''Contra deal''' is agreement on the basis of barter cooperation. The contract consists in the exchange of goods between the entities, goods or services. It is a non-cash pact. Contra deal is used by entities with no cash. People exchanging goods or services strive to make them comparable in [[price]]. It is important that the transaction bilnas be zero <ref>Sheets. J, (2010), ''To contra or not to contra: Trade-outs sometime work.'',Grassroots Editor , p5-6. 2p.</ref>. | '''Contra deal''' is agreement on the basis of barter cooperation. The contract consists in the exchange of goods between the entities, goods or services. It is a non-cash pact. Contra deal is used by entities with no cash. People exchanging goods or services strive to make them comparable in [[price]]. It is important that the transaction bilnas be zero <ref>Sheets. J, (2010), ''To contra or not to contra: Trade-outs sometime work.'',Grassroots Editor , p5-6. 2p.</ref>. | ||
==Structure a Contra Deal Agreement== | ==Structure of a Contra Deal Agreement== | ||
[[File:structure_of_contra_deal.png|300px|right|thumb|Fig.1. The structure of a contra deal]] | |||
The contract versus should contain specific elements. An example template is presented below: | The contract versus should contain specific elements. An example template is presented below: | ||
* '''Identity''' | * '''Identity''' | ||
| Line 23: | Line 8: | ||
* '''[[Product]] description''' | * '''[[Product]] description''' | ||
Product description of the [[service]] and product offered. Remember about serial numbers of data. The contract versus the contract is a sales contract, which is why it is important to describe the good in detail. | Product description of the [[service]] and product offered. Remember about serial numbers of data. The contract versus the contract is a sales contract, which is why it is important to describe the good in detail. | ||
* ''' | * '''Offer value''' | ||
The offer can be made according to the [[market]] rate - a reasonable price. | The offer can be made according to the [[market]] rate - a [[reasonable price]]. | ||
A contra deal is registered as a cyclical transaction in your bookkeeping. If the exchanges will be different from each other, how will it [[work]]. | A contra deal is registered as a cyclical transaction in your bookkeeping. If the exchanges will be different from each other, how will it [[work]]. | ||
* '''Desired barter agreement''' | * '''Desired barter agreement''' | ||
| Line 35: | Line 20: | ||
==Disadvantages contra deal== | ==Disadvantages contra deal== | ||
Due to the fact that the contra deal is a cashless exchange there are many problems and contradictions connected with it. The exchange of goods and services from both parties to the contract should be equivalent. Nowadays people have a different feeling of the value of specific dates and services. Convergence depends on different perceptions of different communities. That is why it is important to prepare and sign the contra deal. It is a security and a guarantee on what items or goods an exchange is being made. Copies of the contract should be signed by both parties to the contract <ref> Alcantara. C, (2013)''Negotiating the Deal : Comprehensive Land Claims Agreements in Canada'' p.13 </ref>. | Due to the fact that the contra deal is a cashless exchange there are many problems and contradictions connected with it. The exchange of goods and services from both parties to the contract should be equivalent. Nowadays people have a different feeling of the value of specific dates and services. Convergence depends on different perceptions of different communities. That is why it is important to prepare and sign the contra deal. It is a security and a guarantee on what items or goods an exchange is being made. Copies of the contract should be signed by both parties to the contract <ref> Alcantara. C, (2013)''Negotiating the Deal : Comprehensive Land Claims Agreements in Canada'' p.13 </ref>. | ||
==Examples of Contra deal== | |||
* A farmer barters agricultural produce for a service from a mechanic. | |||
* A grocery store owner exchanges food items for plumbing services from a plumber. | |||
* A restaurant owner exchanges a meal for a haircut from a hairdresser. | |||
* A furniture maker trades a couch for painting services from a painter. | |||
* An electrician trades electrical repairs for a gym membership from a fitness center. | |||
* A carpenter trades woodwork for a massage from a massage therapist. | |||
* A clothing store exchanges clothes for web design services from a web designer. | |||
==Other approaches related to Contra deal== | |||
Contra deal is an exchange between two entities of goods or services without using cash. There are also other approaches related to Contra deal. These include: | |||
* Reciprocal trading, which is a type of barter trade where two parties exchange goods or services without involving currency. This can be done for a number of reasons such as to reduce costs or to increase [[efficiency]]. | |||
* [[Countertrade]], which is a form of trading where goods are exchanged for other goods. This is often used to facilitate international trade by eliminating the [[need]] for foreign currency. | |||
* Barter, which is a type of direct exchange of goods or services that takes place without any money changing hands. | |||
In summary, Contra deal is an agreement between two entities of goods or services without cash. Other approaches related to Contra deal include reciprocal trading, countertrade, and barter. All of these approaches provide a way for entities to trade goods or services without the use of cash. | |||
==Footnotes== | ==Footnotes== | ||
<references /> | <references /> | ||
{{infobox5|list1={{i5link|a=[[Debit Note]]}} — {{i5link|a=[[Standing offer]]}} — {{i5link|a=[[Barter agreement]]}} — {{i5link|a=[[Purchase specification]]}} — {{i5link|a=[[Trade counter]]}} — {{i5link|a=[[Revolving letter of credit]]}} — {{i5link|a=[[Shipping guarantee]]}} — {{i5link|a=[[Acknowledgement of receipt]]}} — {{i5link|a=[[Collecting bank]]}} }} | |||
==References== | ==References== | ||
Latest revision as of 16:40, 17 November 2023
Contra deal is agreement on the basis of barter cooperation. The contract consists in the exchange of goods between the entities, goods or services. It is a non-cash pact. Contra deal is used by entities with no cash. People exchanging goods or services strive to make them comparable in price. It is important that the transaction bilnas be zero [1].
Structure of a Contra Deal Agreement
The contract versus should contain specific elements. An example template is presented below:
- Identity
The contract should be the consumption for two parties to the transaction. Data and exchange details should be saved on. The record gives guarantees with whom. There are interests and under what conditions.
- Product description
Product description of the service and product offered. Remember about serial numbers of data. The contract versus the contract is a sales contract, which is why it is important to describe the good in detail.
- Offer value
The offer can be made according to the market rate - a reasonable price. A contra deal is registered as a cyclical transaction in your bookkeeping. If the exchanges will be different from each other, how will it work.
- Desired barter agreement
In this passage, provide a detailed description of the service or product that you will receive in exchange for your offer. It is to confirm your request. From now on, the description of this good or service has been received. This is a valuable safeguard against fraud or other value of the good received.
- Timeline
The schedule should be included in the contract. It is important to specify when it will happen and put it in writing. Saved ten times to arrange details in the schedule and time to be agreed. The schedule helps when planning deliveries and keeping contract terms.
The contractor is a great customer for a company that is not a money company. It is important to draw up a contract. If you have any problems, get legal help [2].
Disadvantages contra deal
Due to the fact that the contra deal is a cashless exchange there are many problems and contradictions connected with it. The exchange of goods and services from both parties to the contract should be equivalent. Nowadays people have a different feeling of the value of specific dates and services. Convergence depends on different perceptions of different communities. That is why it is important to prepare and sign the contra deal. It is a security and a guarantee on what items or goods an exchange is being made. Copies of the contract should be signed by both parties to the contract [3].
Examples of Contra deal
- A farmer barters agricultural produce for a service from a mechanic.
- A grocery store owner exchanges food items for plumbing services from a plumber.
- A restaurant owner exchanges a meal for a haircut from a hairdresser.
- A furniture maker trades a couch for painting services from a painter.
- An electrician trades electrical repairs for a gym membership from a fitness center.
- A carpenter trades woodwork for a massage from a massage therapist.
- A clothing store exchanges clothes for web design services from a web designer.
Contra deal is an exchange between two entities of goods or services without using cash. There are also other approaches related to Contra deal. These include:
- Reciprocal trading, which is a type of barter trade where two parties exchange goods or services without involving currency. This can be done for a number of reasons such as to reduce costs or to increase efficiency.
- Countertrade, which is a form of trading where goods are exchanged for other goods. This is often used to facilitate international trade by eliminating the need for foreign currency.
- Barter, which is a type of direct exchange of goods or services that takes place without any money changing hands.
In summary, Contra deal is an agreement between two entities of goods or services without cash. Other approaches related to Contra deal include reciprocal trading, countertrade, and barter. All of these approaches provide a way for entities to trade goods or services without the use of cash.
Footnotes
| Contra deal — recommended articles |
| Debit Note — Standing offer — Barter agreement — Purchase specification — Trade counter — Revolving letter of credit — Shipping guarantee — Acknowledgement of receipt — Collecting bank |
References
- Alcantara. C, (2013)Negotiating the Deal : Comprehensive Land Claims Agreements in Canada p.13
- Bruner. R, (2005) Deals From Hell : M&A Lessons That Rise Above the Ashes, Hoboken, N.J, p.26
- Evans. D, (2006),Barter Training Manual.doc, XO Limited
- Portia. O, Mercy. M (2011),Barter trading: An empirical investigation of management practices , African Journal of Business Management, Vol. 5(31)
- Ritter. J. A, (1995) The Transition From Barter to Fiat Money. American Economic Review
- Sheets. J, (2010), To contra or not to contra: Trade-outs sometime work.,Grassroots Editor, p5-6. 2p.
Author: Klaudia Rodak
