arm's length transaction

Definition

A transaction between two related or affiliated parties that is conducted as if they were unrelated, so that there is no question of a conflict of interest. Or sometimes, a transaction between two otherwise unrelated or affiliated parties.

Use this term in a sentence

To minimize conflict of interest in certain situations an arm's length transaction may be the best course of action.

​ Was this Helpful? YES  NO 10 out of 10 people found this helpful.

Show more usage examples...

Featured Advertiser

Mentioned in these terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
non-arm's length transaction transfer pricing