fair value

fair value
Present market value; such sum as the property will sell for to a purchaser desiring to buy, the owner wishing to sell; such a price as a capable and diligent business man could presently obtain from the property after conferring with those accustomed to buy such property; the amount the property would bring at a sale on execution shown to have been in all respects fair and reasonable; the fair market value of the property as between one who wants to purchase and one who wants to sell the property.
Where no definite market value can be established and expert testimony must be relied on, fair valuation is the amount which the property ought to give to a going concern as a fair return, if sold to some one who is willing to purchase under ordinary selling conditions. In determining "fair valuation" of property, court should consider all elements entering into the intrinsic value, as well as the selling value, and also the earning power of the property. In re Gibson Hotels, D.C.W.Va., 24 F.Supp. 859, 863.
In determining depreciation, "fair value" implies consideration of all factors material in negotiating sale and purchase of property, such as wear, decay, deterioration, obsolescence, inadequacy, and redundancy. Idaho Power Co. v. Thompson, D.C.Idaho, 19 F.2d 547, 566.
Price which a seller, willing but not compelled to sell, would take, and a purchaser, willing but not compelled to buy, would pay. Price which buyers of the class which would be interested in buying property would be justified in paying for it. In re Crane's Estate, 344 Pa. 141, 23 A.2d 851, 855.
Within provision of business corporation act for determination of fair value of dissenting stockholder's shares, "fair value" means intrinsic value. Santee Oil Co., Inc. v. Cox, 265 S.C. 270, 217 S.E.2d 789, 793.
Among elements to be considered in arriving at "fair value" or "fair cash value" of stock of a stockholder who dissents from a sale of corporate assets are its market value, net asset value, investment value, and earning capacity. Lucas v. Pembroke Water Co., 205 Va. 84, 135 S.E.2d 147, 150.
"Actual value," "market value," "fair value," and the like, are commonly used as convertible terms.

Black's law dictionary. . 1990.

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