Also known as: fair market value
Written by attorneys · grounded in primary & secondary sources — see below
The price that would result from negotiation and mutual agreement between a vendor who is willing but not compelled to sell and a purchaser who is willing to buy but not compelled to purchase a particular asset.
Felicia Fuentes, a tenant, validly terminates her lease after the landlord breaches repair obligations. On the termination date the leasehold interest has a fair market value of $45,000. The landlord must pay that amount as part of the damages calculation under the governing rule.
Forrest Falconer is appointed personal representative of his aunt's estate. Within three months he prepares the inventory listing each asset with its fair market value as of the date of death and files the document with the court.
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Francois Fortier, a college president, receives a government land conveyance. A nonprofit organization sues claiming the transfer violates the Establishment Clause. The court evaluates whether the organization has standing before reaching any fair market value questions about the property.
Fiona Foster, a minority shareholder, challenges a corporate reorganization. The court determines that the fair market value of the shares must be established to assess whether the transaction was fair to all owners.
Francesca Fowler inherits property subject to a mortgage. The fair market value of the property at the time of death is used to establish her basis for depreciation and gain or loss purposes on later sale.
Fusion Power shareholders sue after a cash-out merger. They allege the price paid was below fair market value. The court examines whether the transaction involved manipulative conduct rather than mere unfairness in valuation.
The court may determine fair market value as of the foreclosure sale date. If that value exceeds the sale price, the deficiency defendant receives an offset equal to the difference after subtracting any surviving liens.
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Expectation damages equal the difference between the fair market value of the building as promised and the fair market value of the building as delivered. The contract price itself is not subtracted from current market value to reach this figure.
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The representative must indicate the fair market value of each asset as of the date of the decedent's death within three months after appointment, unless a special administrator or prior representative has already performed the duty.
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No. Acceptance of the property does not bar a damages claim. The buyer may still recover the difference between the value of the performance promised and the value actually received.
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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…