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".
There are multiple definitions - click on the translation that matches your context.
- Fremdvergleichgrundsatz
- Transaktion, bei der jede der beteiligten Parteien im eigenen Interesse und für eigene Rechnung handelt
arm's length transaction means:
Fremdvergleichgrundsatz
Substantiv
partial
arm's length transaction
noun
Definitions of arm's length transaction
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.