Negotiation Terminology

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Concession

• A willingness to make a compromise or yield to the demands or requests of the other party during negotiations.

• The final offer presented by one party in a negotiation.

• The negotiation process's opening statement, outlining each party's goals.

Counteroffer

• A response to an initial offer, usually proposing different terms or conditions for a deal.

• An agreement reached during negotiations that benefits only one party.

• The negotiation strategy of withholding information to gain an advantage.

Win-Win Negotiation

• An approach to negotiation where both parties seek mutually beneficial solutions and outcomes.

• A negotiation tactic that involves making extreme demands to secure favorable terms.

• The final written agreement that concludes negotiations.

Deadlock

• A situation where negotiations have come to a standstill because both parties are unable or unwilling to make further concessions.

• The negotiation strategy of playing hardball and refusing to make any compromises.

• The initial proposal presented by one party in a negotiation.

Negotiation Agenda

• A structured plan outlining the topics or issues to be discussed and resolved during negotiations.

• A document summarizing the negotiation's outcomes and agreed-upon terms.

• The negotiation strategy of diverting attention away from the main issues.

RFP(Request for Proposal)

• A formal document issued by a company to solicit bids from potential vendors or suppliers for a specific project or contract.

• The negotiation strategy of making a series of small concessions to build trust.

• The negotiation tactic of delaying decisions to gain more favorable terms.

MOU(Memorandum of Understanding)

• A non-binding agreement that outlines the general terms and intentions of parties involved in a negotiation or partnership.

• The final written agreement that concludes negotiations.

• A legally binding contract that requires parties involved to protect confidential information shared during negotiations or business transactions.

Escalation Clause

• A provision in a contract that outlines a predetermined process for resolving disputes or issues that may arise during the agreement.

• The negotiation strategy of involving a neutral third party to mediate a dispute.

• The negotiation tactic of increasing pressure or demands to gain an advantage.

Walk-Away Point

• The point during negotiations when both parties are satisfied with the proposed terms.

• The point during negotiations at which a party is no longer willing to continue and is prepared to abandon the deal.