Comparative law notes
The German concept is predicated on the same standard: deals must be executed on market conditions (no sweet-heart deals). The best literal translation of Fremdvergleichgrundsatz would be the "arm's length principal".
Substantiv
partial
noun
The German concept is predicated on the same standard: deals must be executed on market conditions (no sweet-heart deals). The best literal translation of Fremdvergleichgrundsatz would be the "arm's length principal".
a deal in which the parties act independently, each in their own self-interest and have no relationship to each other
Mr. Coetzee, for the plaintiff, argued that this was not an arm's length transaction, based upon the family relationship between the parties.