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Arm's Length Transaction
(redirected from Arms Length Agreement)

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Arm's Length Transaction
A transaction in which the buyer and the seller have no significant, prior relationship. In an arm's length transaction, neither party has an incentive to act against his/her own interest. That is, the seller seeks to make the price as high as he/she can, and likewise the buyer seeks to make it as low as he/she can. The negotiations for an arm's length transaction result in the arm's length price, which is almost always close to the market value of the asset being sold. The term is often used in real estate transactions because family members often sell property to each other at something other than the arm's length price.


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The council signed up to arms length agreements, but that doesn''t mean washing its hands of responsibility.
The announcement of the arms length agreement to acquire the remaining 50% of the project was announced on July 31.
Trenton -- Black River Deep Gas Play, Appalachian Basin Gastar has recently entered into an arms length agreement to participate with Columbia Natural Resources (CNR, a subsidiary of NiSource (NYSE: NI)) and other Joint Development Companies in the drilling of two wells to test the Trenton-Black River formation in the Cottontree Field, Roane County, West Virginia.
 
 
 
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