# Arm’s Length Basis

> Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.

**Term:** Arm’s Length Basis  
**Last updated:** 2026-06-12

## Definition

Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.

## Context

### 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

### Relevant sectors

- Legal Services
- Business Services
- Commercial Contracts

## Relevant contract types

- [Finder's Fee Agreement](https://www.genieai.co/en-us/template-type/finders-fee-agreement)
- [Service Agreement](https://www.genieai.co/en-us/template-type/service-agreement)
- [Sale Agreement](https://www.genieai.co/en-us/template-type/sale-agreement)

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