Legal Definition and Related Resources of Goodwill

The advantage or benefit which is acquired by a business , beyond the mere value of the capital , stock , funds or property employed therein, in consequence of the general public patronage and encouragement which it receives from constant or habitual customers. See Metropolitan Nat. Bank v St. Louis Dispatch Co., 149 U.S. 436, 13 S.Ct. 944, 37 L. Ed. 799. It is property of intangible nature constituting a valuable asset of the business of which it is part. See Camden v Stuart, 144 U.S. 104, 12 S. Ct. 585, 36 L.Ed. 363.

Excess of the purchase price over the fair market value of the net assets acquired under purchase accounting.

The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition.

Browse or run a search for Goodwill in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Goodwill in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Goodwill in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Goodwill in the Legal Abbreviations and Acronyms Dictionary.

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Mentioned in these terms

Intangible.

See also

An intangible asset arising from the reputation of a business and its… (Read more)

English Legal System: Goodwill

In the context of the English law, A Dictionary of Law provides the following legal concept of Goodwill :

The advantage arising from the reputation and trade connections of a business, in particular the likelihood that existing customers will continue to patronize it. Goodwill is a substantial item to be taken into account on the sale of a business; it may need to be protected by prohibiting the vendor from setting up in the same business for a stated period in competition with the business he has sold.

Goodwill Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Goodwill in a way that is easy for anybody to understand: Premium paid in the acquisition of an entity over the fair value of its identifiable tangible and intangible ASSETS less LIABILITIES assumed.

United States Tax Concept of Goodwill

An intangible asset which enables a business to continue to earn a profit which is in excess of the normal amount of profit earned by other businesses of a similar type. The goodwill of a business may be due to a particularly favorable location, its reputation in the community, or the quality of the company and its employees.

Good will is an assetof a business that may be bought and sold in connection with the business. Goodwill is a marketplace advantage of customer patronage.

Good will is an assetof a business that may be bought and sold in connection with the business. Goodwill is a marketplace advantage of customer patronage.

What is Goodwill?

A definition of goodwill is: The ability of a business to generate income in excess of normal rate on assets, due to superior managerial skills, market position, new product technology, etc. More details on the Encyclopedia. The capacity to earn profits in excess of a normal rate of return due to establishment of favorable community reputation and consumer identification of the business name. More details on the Encyclopedia.

More about the Concept of Goodwill

As applied to law firms, term refers to ability to attract clients as result of firm’s name, location, or the reputation of lawyers. More details on the Encyclopedia.

Developments

For accounting purposes, goodwill has no basis unless it is purchased. More details on the Encyclopedia. In the purchase of a business, goodwill generally is the difference between the purchase price and the value of the assets acquired. More details on the Encyclopedia. Goodwill is an intangible asset and cannot be amortized for tax purposes.[1]

Resources

Notes

1. “Goodwill” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also

• Amortization

What is Goodwill?

A definition of goodwill is: The favor which the management of a business wins from the public. More details on the Encyclopedia. The favorable consideration shown by the purchasing public to goods or services known to emanate from a particular source. More details on the Encyclopedia. White Tower System v. More details on the Encyclopedia. White Castle System of Eating Houses Corporation, C. More details on the Encyclopedia.C. More details on the Encyclopedia.A. More details on the Encyclopedia.Mich. More details on the Encyclopedia., 90 F. More details on the Encyclopedia.2d 67, 69. More details on the Encyclopedia. Property of an intangible nature, commonly defined as the expectation of continued public patronage. More details on the Encyclopedia.

More about the Concept of Goodwill

The custom of patronage of any established trade or business; the benefit or advantage of having established a business and secured its patronage by the public. More details on the Encyclopedia. And as property incident to business sold, favor vendor has won from public, and probability that all customers will continue their patronage. More details on the Encyclopedia. It means every positive advantage that has been acquired by a proprietor in carrying on his business, whether connected with the premises in which the business is conducted, or with the name under which it is managed, or with any other matter carrying with it the benefit of the business. More details on the Encyclopedia.

Developments

The excess of cost of an acquired firm or operating unit over the current or fair market value of net assets of the acquired unit. More details on the Encyclopedia. Informally used to indicate the value of good customer relations, high employee morale, a well-respected business name, etc. More details on the Encyclopedia. which are expected to result in greater than normal earning power.[1]

Resources

Notes

1. “Goodwill” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also

Hierarchical Display of Goodwill

Trade > Distributive trades > Distributive trades
Trade > Trade policy > Commercial law
Business And Competition > Management > Management > Intellectual capital
Business And Competition > Business organisation > Business policy > Business location
Business And Competition > Accounting > Accounting > Financial accounting > Intangible asset

Meaning of Goodwill

Overview and more information about Goodwill

For a more comprehensive understanding of Goodwill, see in the general part of the online platform.[rtbs name=”xxx-xxx”]

Resources

Translation of Goodwill

• Spanish: Fondo de comercio
• French: Fonds de commerce
• German: Geschäfts- oder Firmenwert
• Italian: Azienda commerciale
• Portuguese: Fundo de comércio
• Polish: Wartość firmy

Thesaurus of Goodwill

Trade > Distributive trades > Distributive trades > Goodwill
Trade > Trade policy > Commercial law > Goodwill
Business And Competition > Management > Management > Intellectual capital > Goodwill
Business And Competition > Business organisation > Business policy > Business location > Goodwill
Business And Competition > Accounting > Accounting > Financial accounting > Intangible asset > Goodwill

See also

• Commercial law
• Commercial arbitration
• Law on negotiable instruments
• Commercial contract
• Business location