Fair Market Value definition: Copy, customize, and use instantly
Introduction
The term "Fair Market Value" refers to the estimated price at which an asset or service would change hands between a willing buyer and a willing seller, neither being under any pressure to buy or sell. This term is frequently used in contracts for the valuation of assets, transactions, or compensation.
Below are various examples of how "Fair Market Value" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Fair Market Value" as an independent valuation standard
This definition ties "Fair Market Value" to objective pricing in transactions.
"Fair Market Value" means the price at which an asset or service would change hands between a willing buyer and a willing seller, both having reasonable knowledge of relevant facts and neither being under compulsion to buy or sell.
Definition of "Fair Market Value" as an appraisal-based measure
This definition connects "Fair Market Value" to professional valuations.
"Fair Market Value" refers to the estimated price of an asset as determined by an independent appraiser, considering market conditions and comparable transactions.
Definition of "Fair Market Value" as a benchmark for financial reporting
This definition applies "Fair Market Value" to accounting principles.
"Fair Market Value" means the valuation of an asset or liability recorded in financial statements based on its current market price under generally accepted accounting principles (GAAP).
Definition of "Fair Market Value" as a tax assessment basis
This definition ties "Fair Market Value" to taxation.
"Fair Market Value" refers to the assessed value of property or assets for tax purposes, determined by local tax authorities using market data and valuation models.
Definition of "Fair Market Value" as a standard for mergers and acquisitions
This definition connects "Fair Market Value" to corporate transactions.
"Fair Market Value" means the price assigned to a company or its assets in a merger, acquisition, or business combination, reflecting its worth in an open market.
Definition of "Fair Market Value" as a valuation in legal disputes
This definition applies "Fair Market Value" to litigation and settlements.
"Fair Market Value" refers to the price of an asset or business interest determined by a court or arbitration panel in legal disputes involving damages, dissolution, or eminent domain.
Definition of "Fair Market Value" as a pricing method for real estate
This definition ties "Fair Market Value" to property transactions.
"Fair Market Value" means the price at which a real estate property would be sold in an arm’s length transaction between a knowledgeable buyer and seller under current market conditions.
Definition of "Fair Market Value" as a guideline for insurance claims
This definition connects "Fair Market Value" to compensation assessments.
"Fair Market Value" refers to the valuation used by insurance companies to determine claim payouts, reflecting the asset’s worth at the time of loss or damage.
Definition of "Fair Market Value" as a measure for equity compensation
This definition applies "Fair Market Value" to stock options.
"Fair Market Value" means the per-share value of a company’s stock as determined by an independent valuation, stock market price, or other objective means for purposes of employee stock options.
Definition of "Fair Market Value" as a factor in related-party transactions
This definition ties "Fair Market Value" to compliance with transfer pricing rules.
"Fair Market Value" refers to the price that would be agreed upon in a transaction between unrelated parties, used to ensure fairness in related-party transactions.
Definition of "Fair Market Value" as a determinant in estate planning
This definition connects "Fair Market Value" to inheritance and gifting.
"Fair Market Value" means the valuation of inherited or gifted property at the time of transfer for estate tax and reporting purposes.
Definition of "Fair Market Value" as a financial metric in bankruptcy
This definition applies "Fair Market Value" to insolvency proceedings.
"Fair Market Value" refers to the price assigned to a debtor’s assets in bankruptcy proceedings, used to determine creditor repayment allocations.
Definition of "Fair Market Value" as a reference for leasing agreements
This definition ties "Fair Market Value" to lease renewals and buyouts.
"Fair Market Value" means the price at which leased equipment or property can be purchased at the end of a lease term, as determined by an independent appraisal or market data.
Definition of "Fair Market Value" as a metric for charitable donations
This definition connects "Fair Market Value" to tax-deductible contributions.
"Fair Market Value" refers to the price of donated assets or goods as determined by the IRS for the purpose of tax deductions.
Definition of "Fair Market Value" as an economic indicator
This definition applies "Fair Market Value" to broader market analysis.
"Fair Market Value" means the price of an asset or service as determined by supply and demand dynamics in an open and competitive market.
Definition of "Fair Market Value" as a valuation for intellectual property
This definition ties "Fair Market Value" to intangible assets.
"Fair Market Value" refers to the estimated price of patents, trademarks, copyrights, or trade secrets in a transaction between willing buyers and sellers.
Definition of "Fair Market Value" as a determinant in regulatory compliance
This definition connects "Fair Market Value" to legal standards.
"Fair Market Value" means the valuation standard used in regulatory compliance, ensuring fair pricing in public transactions or government contracts.
Definition of "Fair Market Value" as a basis for compensation in eminent domain
This definition applies "Fair Market Value" to government takings.
"Fair Market Value" refers to the price at which a property would be sold in an open market, used to determine just compensation in eminent domain cases.
Definition of "Fair Market Value" as a basis for corporate buybacks
This definition ties "Fair Market Value" to stock repurchase programs.
"Fair Market Value" means the price at which a corporation repurchases its own shares, determined by prevailing market conditions.
Definition of "Fair Market Value" as an adjustment factor in financial modeling
This definition connects "Fair Market Value" to valuation methodologies.
"Fair Market Value" refers to the pricing benchmark used in financial modeling to assess the intrinsic worth of an asset or investment.
Definition of "Fair Market Value" as a determinant in capital gains taxation
This definition applies "Fair Market Value" to tax liabilities.
"Fair Market Value" means the price used to determine taxable capital gains when an asset is sold, exchanged, or transferred.
Definition of "Fair Market Value" as a criterion in shareholder buyout agreements
This definition ties "Fair Market Value" to corporate governance.
"Fair Market Value" refers to the price at which a shareholder’s interest is bought out, as determined by an independent valuation or agreed formula.
Definition of "Fair Market Value" as a benchmark for alternative investments
This definition connects "Fair Market Value" to private equity and venture capital.
"Fair Market Value" means the estimated worth of an illiquid investment, such as a startup or private equity fund, based on market conditions and projected cash flows.
Definition of "Fair Market Value" as an evaluation standard for medical services
This definition applies "Fair Market Value" to healthcare.
"Fair Market Value" refers to the reasonable price for medical procedures or services, determined by industry standards and regional pricing benchmarks.
Definition of "Fair Market Value" as a measure for cryptocurrency valuation
This definition ties "Fair Market Value" to digital assets.
"Fair Market Value" means the current exchange rate of a cryptocurrency, determined by trading activity on recognized digital asset exchanges.
Definition of "Fair Market Value" as a standard for buy-sell agreements
This definition applies "Fair Market Value" to business ownership transitions.
"Fair Market Value" means the price at which a business interest is transferred under a buy-sell agreement, determined by a pre-established valuation method or independent appraisal.
Definition of "Fair Market Value" as a basis for pension asset valuation
This definition ties "Fair Market Value" to retirement funds.
"Fair Market Value" refers to the market price of pension plan assets, used to determine funding levels and actuarial projections.
Definition of "Fair Market Value" as a measure for distressed asset pricing
This definition connects "Fair Market Value" to financially troubled assets.
"Fair Market Value" means the price a distressed asset, such as a foreclosed property or defaulted bond, would fetch in a competitive market.
Definition of "Fair Market Value" as a pricing factor in franchising
This definition applies "Fair Market Value" to franchise agreements.
"Fair Market Value" refers to the estimated price of a franchised business, including intangible assets like brand recognition and goodwill.
Definition of "Fair Market Value" as a benchmark for mineral rights transactions
This definition ties "Fair Market Value" to natural resources.
"Fair Market Value" means the price of mineral rights, oil reserves, or land leases, based on geological surveys and market demand.
Definition of "Fair Market Value" as a determinant in artwork and collectibles pricing
This definition connects "Fair Market Value" to luxury assets.
"Fair Market Value" refers to the price of art, antiques, or rare collectibles as determined by auction results, appraisals, and collector demand.
Definition of "Fair Market Value" as an evaluation metric for debt instruments
This definition applies "Fair Market Value" to bonds and loans.
"Fair Market Value" means the market price of a bond or loan, influenced by interest rates, credit risk, and investor sentiment.
Definition of "Fair Market Value" as a measure for farmland valuation
This definition ties "Fair Market Value" to agricultural assets.
"Fair Market Value" refers to the estimated price of farmland, factoring in soil quality, crop productivity, and local land sales.
Definition of "Fair Market Value" as a consideration in antitrust analysis
This definition connects "Fair Market Value" to regulatory oversight.
"Fair Market Value" means the assessed price of a company or asset in antitrust cases, used to evaluate market competition and fair pricing.
Definition of "Fair Market Value" as a determinant in distressed business sales
This definition applies "Fair Market Value" to corporate restructuring.
"Fair Market Value" refers to the price a struggling business would command in an expedited sale, considering asset liquidation values and buyer interest.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.