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

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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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At a cabinet meeting yesterday, councillors approved plans to set up HeatCo, an arms-length company created by the council with Coventry University and a jointly procured private sector partner, to steer the scheme.
HMI, Stock Forum) added 12% at 14 cents as the junior explorer announced that it has signed an arms-length agreement to acquire the 75-claim (1553 hectare) "Culvert" gold property located some 200km north of Watson Lake, Yukon (TSX: V.
Highlighting a top salary of almost pounds 400,000 a year, Mr Shapps said the executives running the arms-length bodies which manage council housing should be subject to the same scrutiny.
 
 
 
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