arm's length

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arm's length

adj. the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. It becomes important to determine if an agreement was freely entered into to show that the price, requirements, and other conditions were fair and real. Example: if a man sells property to his son the value set may not be the true value since it may not have been an "arm's length" transaction. (See: contract)

References in periodicals archive ?
This definition of an arm's length transaction eliminates sale or lease contracts in which foreclosures or even short sales took place, or where sale/leasebacks, build-to-suit, corporate guarantees, or other unconventional financial characteristics were involved.
in the scope of an arm's length transaction, the commercial property located at 3601 St-Jacques West, in Montreal.
TSX-V:NTR) ("Nustar") has sold four mineral claims located in the Omineca Mining Division of British Columbia, otherwise known as the 'Chu' Property, in an arm's length transaction.
The amalgamation will be an arm's length transaction effected in accordance with the policies of the TSX Venture Exchange ("Exchange").
47) Similarly, dispositions of property to an unrelated party within a reasonable period of time after such property is acquired from a related party are evidence of arm's length transactions.
The team's work included analyzing hundreds of invoices for advertising on Gemstar's interactive programming guide (IPG) and demonstrating that the limited number of invoices executed as arm's length transactions were fundamentally different from the remaining invoices, for which there was no market justification.
Another strategy, common to lenders in arm's length transactions, is to reduce the outstanding debt to a level jan can manage, stretch.