The established market price refers to the price that is commonly accepted in the marketplace for a particular good or service. This price is determined through normal trading practices between buyers and sellers who are free to negotiate. It is important that this price can be verified through sources that are independent of the manufacturer or vendor, although it may sometimes be obtained from the seller themselves.
The term "established market price" is frequently used in various legal contexts, particularly in contracts, commercial law, and real estate transactions. Understanding this price is essential for determining fair value in negotiations, assessing damages in disputes, and ensuring compliance with regulatory standards. Users may find it helpful to utilize legal templates from US Legal Forms to draft agreements that incorporate established market prices effectively.
Here are a couple of examples of abatement:
Example 1: A buyer and seller negotiate the price of a used car. They settle on a price that reflects the established market price based on similar vehicles sold in the area.
Example 2: A company is assessing the value of its inventory for financial reporting and refers to the established market price for its products to ensure accurate valuation. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Market Price Definition |
|---|---|
| California | Market price is often based on local sales data and can vary by region. |
| New York | Market price may include considerations for supply and demand fluctuations. |
| Texas | Market price is influenced by industry standards and historical sales data. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Market Value | The estimated amount for which an asset should exchange on the date of valuation. | Market value is often influenced by external factors, while established market price is based on actual transactions. |
| Fair Market Price | The price at which property would sell in a competitive auction setting. | Fair market price assumes a willing buyer and seller, while established market price reflects ongoing market conditions. |
If you are involved in a transaction where the established market price is relevant, consider the following steps:
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An established market price is the commonly accepted price for goods or services based on actual market transactions.