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Friends with benefits is a type of relationship in which there is a friendship between two individuals, but they also engage in sexual activities with one another. However, this is no commitment to be anything more than friends.
Friends with benefits is a relationship in which the individuals involved get the benefits of the physical aspects of a romantic relationship without actually having one. The individuals are typically single and remain friends while exchanging sexual favors, though the pair never date or are exclusive. The idea is that the two individuals can have sex and a friendship while not having any commitment to one another.