What does negotiability mean?
Negotiability is the quality of something being open to discussion, alteration, or agreement. It describes the possibility that terms—such as those in a contract, agreement, or proposal—can be changed through negotiation rather than being fixed and final. In legal and commercial language, negotiability can also mean that a document or instrument may be transferred to someone else. The word is useful because it captures both the practical scope for compromise and the legal idea of transferability. It is more formal than everyday alternatives such as flexibility, but it can identify a specific property of an agreement or financial instrument. For example, a contract may be described as having negotiability when its parties are willing to revisit dates, prices, or responsibilities, while a negotiable instrument can be passed on to another holder.
nounThe quality of being negotiable, especially the possibility of reaching agreement through discussion or changing terms before a decision is made. In commerce and law, it can also refer to the quality of being transferable or capable of being assigned to another party.
- The quality of being capable of being negotiated, altered, or settled through discussion.
- The quality of being transferable or capable of being assigned to another party, especially in a commercial or legal context.
"The negotiability of the contract allowed both sides to agree on a more flexible payment schedule."
"The negotiability of the agreement gave the committee room to revise several clauses."
"The instrument's negotiability allowed it to be transferred to another investor."
Rarely used; the word is ordinarily uncountable and treated as an abstract noun.
"The negotiabilities of different contracts were compared during the review."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does negotiability come from?
Negotiability was formed from negotiate through the suffix -ability, which expresses a state or quality. Negotiate derives from Medieval Latin negotiare, “to conduct business,” from Latin negotium, meaning “business” or “commercial occupation.” The related forms negotiation and negotiator developed from the same Latin root, while negotiable preserves the modern adjectival form associated with terms that can be discussed or transferred.
Related word forms
How negotiability is actually used
The word is most common in formal, legal, and business contexts. In everyday discussion, flexibility may be more natural, while negotiability in the commercial sense is especially associated with contracts, instruments, and other transferable documents.
Easily confused with negotiability
Negotiation is the process of discussing terms, while negotiability is the quality of being open to such discussion or alteration.