Arm's Length Transaction

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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.
References in periodicals archive ?
However, transfers between related parties are assumed not to be at arms length.
Oeri Finance acts at arms length with the Company and the Company has been informed by Oeri Finance that it acts at arms length with each of Holdings, CTL and BTL.
As the Company has previously announced, the Company has an agreement in principle with another private place, acting at arms length with the Company, for a private placement of Cdn.
Newco"), whereby through a proposed arms length business combination (the "Business Combination") Direct IT Canada Inc.
Since Albert Iannantuono is a major shareholder, officer and director of both Andromeda and Tri-Media, this transaction is recognized as non-arms length and therefore subject to arms length independent valuation by BDO Dunwoody.
Since the announcement of the completion of the 1,035,000 shares, the Company received additional subscriptions for the remaining 465,000 shares from certain arms length parties.
The Company has entered into an agreement with Confederation Capital Corporation ("Confederation"), an arms length service provider, wherein Confederation has provided the Company with extensive services regarding the development of new market and channel opportunities in EEC Territories and other European markets and new content opportunities for the Company's existing channels.
The proceeds of the First Private Placement will be used to pay specific outstanding debts of the Company to arms length third parties, with the balance being added to working capital.
Gaetano Manti, Chairman of Norsat, purchased an additional 1,000,000 shares in a private transaction with an arms length party.
This transaction which involved both non arms length and arms length purchasers has been completed.
The subscribers were both arms length and non-arms length parties.
MRS), executed an arms length Definitive Option Agreement to acquire all of the outstanding stock of Trans Mar, Inc.