A transaction among parties each of who acts in his or her own best interest. Example : A transaction between a father and his son would NOT be an an Arm's length transaction.
A transaction between a buyer and seller where there is no degree of relationship. The parties involved are complete strangers, and have no reason for collusion.
A transaction such as a sale of property or the lending of money in which all parties involved are acting in their own self-interest and are under no undue influence or pressure from the other parties. Such a situation is the basis for deriving fair market value, and if the transaction is not at arm's length then the actual selling price will likely be less than or greater than the market value.
An agreement between two parties between whom the absence of a personal or business relationship means they are unlikely to make voluntary concessions to each other.
Transaction in which the parties involved are entirely independent of each other, deal with each other as strangers, and have no reason for collusion.
a sale between two unrelated parties, each of whom is reasonably knowledgeable of market conditions and under no undue pressure or influence to buy or sell.
A colloquial description of a transaction where none of the parties are related to each other or have common interests -- they have each other at "arm's length". An arms-length transaction is generally at fair market value; in a "non-arm's-length" transaction, the relationship between the parties may cause one or the other to accept less than they are entitled or pay more than fair market value.
Any transaction in which there is no pre-existing family or business relationship between the parties.
An Arm's Length Transaction refers to a transaction or a sale in which neither the seller nor the buyer is in a position to take advantage of the other or to receive preferential treatment from the other; both the seller and buyer are trying to maximize their gains. See page 14.
A transaction between two parties who are not related or affiliated in any manner, to avoid any question or conflict of interest.
Transaction between unrelated entities or individuals acting in their own interest.
A phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value. To Top
The type of transaction in which parties are dealing with each other without any concessions of the type that might be given a family member, corporate or business affiliate, or other related party; a transaction at fair market value.