Define: Arm’s Length Basis
Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.
Relevant Circumstances
- When parties want to evidence a transaction is on commercial terms
- If transfer pricing rules require arm's-length consideration
- Where related-party deals must be benchmarked against independent comparables