Legal Definitions - clear market value

Definition: Clear market value is the price that a buyer is willing to pay and a seller is willing to accept for a product or service in an open markettransaction. It is also known as fair market value.

Example: If a person wants to sell their car, the clear market value is the price that a buyer is willing to pay for the car and the seller is willing to accept. If the seller asks for $10,000 and the buyer agrees to pay that amount, then the clear market value of the car is $10,000.

Explanation: The example illustrates how clear market value is determined in a transaction between a buyer and a seller. The price is based on what the buyer is willing to pay and what the seller is willing to accept, and it is influenced by factors such as supply and demand, competition, and the condition of the product or service being sold.