Also known as: fair market prices · fair market value
Written by attorneys · grounded in primary & secondary sources — see below
A price determined by the amount a willing buyer would pay a willing seller in an arm's-length transaction, neither being under compulsion to buy or sell.
Fernando Farrell held a lease on commercial space owned by Frostline Textiles. When the landlord breached a covenant, Fernando exercised his right to terminate. The court calculated damages using the fair market price of the lease on the termination date to measure Fernando's loss.
After Felicia Fuentes died, her personal representative prepared the required inventory within three months. The representative listed each asset with its fair market price as of the date of death and noted any encumbrances on the items.
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Felicity French defaulted on a mortgage held by Fusion Power. After foreclosure sale, she requested a fair market price determination. The court found the property's fair market price exceeded the sale price and reduced the deficiency judgment accordingly.
Felix Franco faced a deficiency action after his property sold at foreclosure for less than the debt. He proved the fair market price at sale exceeded the sale price, so the court applied an offset that eliminated the claimed deficiency.
Felipe Figueroa held a junior easement on land foreclosed by a senior mortgagee. After the sale produced a surplus, the court allocated funds first to junior liens and then paid Felipe the fair market price of the terminated easement before distributing any remainder.
Francisco Frost and his co-shareholder agreed to dissolve their inactive corporation. They transferred the sole asset at a price below its fair market price. The court held the transfer failed to satisfy the statutory requirement of distributing net assets to shareholders.
Fair market price is determined by negotiation between willing parties without compulsion. Courts use it to offset deficiencies when the foreclosure sale price is lower, preventing unjust enrichment of the mortgagee.
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The representative must list each asset's fair market price as of the date of death in the inventory filed within three months of appointment. An appraiser may be hired if value is uncertain.
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A fixed-price right remains valid if the price was reasonable when created. Later market appreciation alone does not render the clause an unreasonable restraint on alienation.
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Recovery is limited to the difference between the price paid and the asset's actual fair market price at the time of purchase plus other reliance losses. Benefit-of-the-bargain damages are unavailable.
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…the city has “taken” their right to this superjacent airspace, thus entitling them to “just compensation” measured by the fair market value of these air rights. Apart from our own disagreement with appellants’ characterization of the effect of the New York City law, see infra , at 134-135, the submission that appellants may…