Legal Definitions - fair cash value

Definition: The amount of money that something is worth in an exchange, determined by what a buyer is willing to pay and a seller is willing to accept in an open markettransaction. It is also known as fair market value.

Examples: If you want to sell your car, the fair cash value is the amount of money that a buyer is willing to pay for it and that you are willing to accept. Similarly, if you want to buy a house, the fair cash value is the amount of money that the seller is willing to accept and that you are willing to pay for it.

Explanation: Fair cash value is determined by the market forces of supply and demand. It is the price that a willing buyer and a willing seller agree upon in an arm's-length transaction. It is important in many areas of law, such as taxation, insurance, and bankruptcy, where the value of assets needs to be determined.