After the report was released, Aphria denied the accusations and issued a rebuttal that the transactions “were negotiated on different terms between two listed companies, each mandating professional financial advisors.” A non-comparison relationship is different from a fiduciary relationship in which the parties are not on an equal footing, but where there are asymmetries of power and information. If Colin sells the house to John, it would not be a comparison transaction, as the two parties are not independent – Colin is influenced by John because he is a member of the family. In addition, John`s $600,000 price is significantly lower than the fair market value of the home based on the valuation. Fannie Mae and Freddie Mac, state-subsidized companies that guarantee and buy mortgages, require parties to sign a short sale affidavit – real estate transactions in which the seller owes more for the property than they receive from the buyer. Fannie Mae and Freddie Mac do this to prevent family members from entering into a special deal that will allow the seller to later recover the buyer`s property. The sale of real estate from parents to children is a simple example of the sale of real estate from parents to children. Parents might want to sell the property to their children at a price below market value, but such a transaction could later be considered by a court as a gift and not a bona foi bargain, which could have different tax and legal consequences. To avoid such a classification, the parties must demonstrate that the transaction was not carried out otherwise than it would have been for an arbitrary third party. This could be done, for example, by the appointment of a disinterested third party, such as for example.
B from an expert or broker, who could give a professional opinion that the sale price is reasonable and reflects the actual value of the property. It is specifically used in contract law to agree on an agreement that resists legal review, even though the parties may have common interests (e.g.B. employers-workers) or be too closely related to be considered fully independent (e.g.B the parties have family ties). A transactional transaction takes place as if both parties did not have an existing relationship. If two people are at a distance from each other, they are not too close to reach a fair agreement in line with market expectations. For some transactions, such as the sale of a business, the seller must provide a guarantee that all aspects of the transaction were completed under different conditions. If this is not the case, the buyer may be entitled to damages. The arm`s length principle (FPA) is the condition or fact that the parties to a transaction are independent and on an equal footing. Such a transaction is called a “transaction being compared”. Since then, Aphria`s shares have recovered from the short seller`s attack and a special committee of independent directors who verified the allegations concluded that the transactions were indeed made at a comparable time. .