Without close contact or having an intimate relationship. A transaction in which the buyers and sellers of a product, act independently and have no relationship to each other. The arm's length principle (ALP) is the condition or the fact that the parties to a transaction are independent and on an equal footing. It is used specifically in contract law to arrange an agreement that will stand up to legal scrutiny, even though the parties may have shared interests or are too closely related to be seen as completely independent.
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