An arm's length transaction is one in which the parties owe each other no special duties and each is acting in his or her self-interest.

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An arm's length transaction refers to a deal in which the buyers and sellers act independently without one party influencing the other. They have no relationship to each other, ensuring that both are acting in their own self-interest and are not subject to any pressure or duress from the other party.

An Arm's Length Transaction Is One in Which the Parties