negotiation
Negotiation is the process by which parties bargain in an effort to reach an agreement. Parties often negotiate the terms of a contract before entering into it. For example, in a corporate merger, parties may negotiate terms such as price, covenants, assumed liabilities, conditions to closing, and indemnification. Parties may also negotiate to resolve disputes or reach an out-of-court settlement.
[Last reviewed in April of 2026 by the Wex Definitions Team]
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