Negotiation Vocabulary in English

A concession is something one party gives up unilaterally — for example, agreeing to a lower price without receiving anything in return. A compromise involves both sides giving something up to reach a mutually acceptable solution. In skilled negotiation, making a concession should ideally be linked to receiving something in return, such as faster payment or a longer contract term.

A deadlock (also called a stalemate) occurs when neither party is willing to move from their position, so the negotiation cannot progress. Deadlocks can be broken by introducing new options, requesting a break, bringing in a mediator, or returning to shared interests rather than fixed positions. Recognising a deadlock early allows negotiators to try alternative strategies before talks collapse entirely.

Good faith means approaching a negotiation honestly, with a genuine intention to reach a fair agreement — not to deceive or manipulate the other party. Negotiating in good faith is both a legal concept (required in many contract situations) and an ethical standard. The phrase often appears in business English as: “Both sides entered negotiations in good faith.”

BATNA stands for Best Alternative to a Negotiated Agreement. It is the course of action you will take if the current negotiation fails. Knowing your BATNA gives you a clear bottom line and negotiating power. The stronger your BATNA — for example, having another potential buyer or supplier — the more leverage you have to walk away from a bad deal.

Both involve a neutral third party, but their roles differ. A mediator helps the two parties communicate and find their own solution — the mediator does not impose a decision. An arbitrator acts more like a judge: they hear both sides and make a binding decision. Mediation is generally less formal and less expensive; arbitration is often used when mediation has failed or when the dispute has legal implications.

Leverage refers to the power or advantage one party holds that allows them to influence the outcome of a negotiation. Leverage might come from having alternative suppliers (making you less dependent on one vendor), owning key information, having a strong BATNA, or representing a large volume of business. The party with greater leverage typically has more ability to set favourable terms.

A win-win outcome is one where all parties in a negotiation feel they have gained something valuable — rather than one side “winning” at the other’s expense. Win-win negotiation focuses on expanding the value available (creating a larger “pie”) rather than simply dividing it. It requires good communication, creative problem-solving, and a willingness to understand the other party’s interests.

An offer is a specific statement of what you are willing to provide or accept, usually at a stated price. A proposal is broader — it outlines a plan or approach and may include multiple elements, conditions, and options. In practice, a negotiation often starts with a proposal that then leads to specific offers and counteroffers as the parties narrow down the terms.

To ratify an agreement means to formally approve or confirm it, making it legally binding. In business, a board of directors may ratify a contract approved by management. In international law, governments ratify treaties through their legislatures. Until an agreement is ratified by the appropriate authority, it may not be fully enforceable.

Use polite but clear language: “Thank you for your offer. However, we were hoping for something closer to…” or “We appreciate your position, but we’d like to propose an alternative…” or “That’s a reasonable starting point — could we discuss the possibility of…?” Avoid blunt rejections; always acknowledge the other party’s position before presenting your counteroffer.