1) The process of parties bargaining in an attempt to reach an agreement. Parties often negotiate the terms of a contract prior to entering into the contract. For example, in negotiating an agreement to enter into a corporate merger, parties will negotiate, among other things, price, representations and warranties, covenants, assumed liabilities, conditions to closing the deal, and indemnities. Parties may also negotiate to reach an out-of-court settlement.
2) See negotiable instrument.
[Last updated in December of 2020 by the Wex Definitions Team]