Fair Market Principles

Fair Market Principles refer to the idea that assets or services are bought and sold at prices determined by the open market, where buyers and sellers freely negotiate. These principles assume no undue influence, fraud, or coercion, and that both parties have reasonable knowledge of the asset’s value. The goal is to establish a price that reflects true economic value, ensuring transactions are fair and transparent. This concept is fundamental in setting equitable prices in sales, leases, and valuations, promoting efficiency and trust in market-based systems.