Legal Question in Construction Law in Michigan
Arms Length Proposal/bid
can someone explain what an ''arms length proposal'' is?it would be concerning building a new home
Asked on 5/24/07, 12:00 am
1 Answer from Attorneys
Regina Mullen
Legal Data Services, PLC
Re: Arms Length Proposal/bid
"Arms length" means basically at or close to market rate, negotiated under cool, stranger-level circumstances.
A deal that was NOT at arms length, might be a special discount you give to your little brother's friend.
In other words, if you sell someone something at a discount, to keep from having some other legal consequences kick in, both sides can stipulate that the deal was conducted at arms length.
Answered on 5/24/07, 2:05 pm
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