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 ?
The second main area of concern in subsection 247(2) is its adoption of a "tax benefit" test to determine whether the "quantum or nature" of amounts should be adjusted by substituting an arm's length transaction that achieves the same effect for that undertaken by the parties.
The transaction, if completed, will constitute Friday Capital's "qualifying fransaction," as defined in TSXV policies and the transaction will be an arm's length transaction for Friday Capital.
in an arm's length transaction, the commercial property located at 5872, Leger blvd.
in an arm's length transaction, the commercial property located at 1010 Ste-Catherine Street East, in Montreal.
The transaction is an arm's length transaction as the directors and officers of Binscarth currently have no interest in DoveCorp.
The transaction should not be considered an arm's length transaction.
The Company's acquisition of IDC is an arm's length transaction.
The Qualifying Transaction is an arm's length transaction.