Define: At Arms Length

At Arms Length
At Arms Length
What is the dictionary definition of At Arms Length?
Dictionary Definition of At Arms Length

At Arms Length:

1. A phrase used to describe a physical distance maintained between two individuals or entities, typically to indicate a level of caution, formality, or detachment in their relationship. It suggests that there is a deliberate effort to keep a certain distance, both physically and emotionally, in order to maintain a sense of objectivity or protect personal boundaries.

2. In a figurative sense, the phrase can also refer to a state of being cautious, skeptical, or wary towards someone or something. It implies a reluctance to become too involved or intimate, often due to a lack of trust or a desire to maintain independence.

3. In a legal context, “at arms length” refers to a transaction or relationship between two parties who are not related or have no personal or financial connection. It signifies that the parties involved are acting independently and in their own self-interest, without any conflict of interest or undue influence.

Overall, the term “at arms length” conveys the idea of maintaining a certain level of distance, both physically and metaphorically, in order to establish boundaries, preserve objectivity, or ensure fairness in various types of relationships or transactions.

Full Definition Of At Arms Length

At arms length is a legal term used to describe a transaction or relationship between two parties who are independent and have no personal or familial ties. It implies that the parties are acting in their own self-interest and without any undue influence or bias.

In legal contexts, the concept of at arms length is often used to determine the fairness and validity of a transaction. For example, in contract law, a transaction between parties at arms length is generally considered to be valid and enforceable. This means that the parties have freely entered into the agreement without any coercion or unfair advantage.

The principle of at arms length is also relevant in tax law. In this context, it is used to determine whether a transaction between related parties, such as family members or affiliated companies, is conducted on fair and market-based terms. If the transaction is not at arms length, tax authorities may adjust the terms of the transaction to reflect what would have been agreed upon by unrelated parties.

Overall, the concept of at arms length is important in various legal contexts to ensure fairness, transparency, and independence in transactions and relationships between parties.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.

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