negotiation

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 reviewed in December of 2020 by the Wex Definitions Team ]

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