1. The act or an instance of conducting business or other dealings; esp., the formation, performance, or discharge of a contract.
2. Something performed or carried out; a business agreement or exchange.
3. Any activity involving two or more persons.
4. Civil law. An agreement that is intended by the parties to prevent or end a dispute and in which they make reciprocal concessions. La. Civ. Code art. 3071. — transactional, adj.
arm’s-length transaction.
1. A transaction between two unrelated and unaffiliated parties.
2. A transaction between two parties, however closely related they may be, conducted as if the parties were strangers, so that no conflict of interest arises.
closed transaction. Tax. A transaction in which an amount realized on a sale or exchange can be established for the purpose of stating a gain or loss. [Cases: Internal Revenue 3393.]
colorable transaction. A sham transaction having the appearance of authenticity; a pretended transaction (the court set aside the colorable transaction).
