Arm's Length Transaction
/ˈɑrmz ˌlɛŋθ trænˈzækʃən/
Definitions
- (n.) A transaction conducted by unrelated parties acting in their own self-interest, ensuring fair market value.
The property sale was an arm's length transaction, reflecting its true market value.
Forms
- arm's length transaction
- arm's length transactions
Related terms
See also
Commentary
Used to distinguish transactions free from duress or undue influence, important for valuation and tax purposes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.