It sounds more like value for value to me.

I'm betting that he didn't stipulate how many loaves were required.

He's lending you his splitter & you're making him some lovely bread. Just neighbors giving value to each other free from binding contracts.

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PS - I've just spent an hour splitting 2 slices of Australian hardwood the hard way.

I'd so much prefer to be baking bread.

That’s exactly how it works. He has no expectations of payment at all. That’s why the exchange is so wholesome.