Non-negotiable refers to something that is not subject to discussion or revision. It could refer to the price of a product or security that is fixed and cannot be modified or modified. It could also refer to a clause in an agreement or contract which is considered to be a condition by both parties. In addition, the term could be used to refer to a commodity or security that cannot be easily transferred between parties.
Understanding Non-Negotiable
A thing can be classified as non-negotiable when one of the parties involved in a transaction isn’t willing to change anything to the terms that have been established. This may be related to the cost of a specific item or service, or an element in the terms of a contract, or even the value of a investment product that is not exchangeable or sold to an owner who is a different one even with the help in second-markets.
Negotiable is the reverse of negotiable. If an asking price or contract is termed negotiable, this means that it’s not fixed and can be altered based on the circumstances. Also instruments that are of this kind can be traded or transferred without difficulty.
For instance for example, for instance, a check is an exchangeable instrument since it could be handed over to an institution of finance in exchange for real money. Physical currency funds like dollar bills are also considered to be negotiable since they are able to be exchanged between two parties. Many securities are negotiable also, provided that the required legal documentation is in place.
Examples of Non-Negotiable
Non-Negotiable Prices
If an asking price is stated as non-negotiable it means that it’s not possible to bargain over it. If one party has set an amount that is non-negotiable it is clear that the opportunity to negotiate has been taken away by the initial one’s inability to be part of this kind of discussion.
A homeowner, for instance, may not want to sell their house until a buyer is willing to offer at minimum $250,000. If the buyer considers the asking price not negotiable, an offer of $245,000 is rejected.
For securities, if an investment is classified as an secured security registered and its price is not able to be altered. This applies to savings bonds since they have an established price on their face (also known as par) and are not able to be traded for any other amount.
Non-Negotiable Contract Elements
A contract might contain conditions that are not negotiable. For instance an employment contract could provide the opportunity to negotiate the salary, but it will be stifling regarding other conditions for example, the amount of days employees can take annual leave.
In addition, in the context that there are leasing in the case of leaseson property that is rented, the total amount to be paid to be paid could be deemed not negotiable since it is usually fixed and must be paid from the renter to the owner of the property.
Non-Negotiable Financial Products
Non-negotiable products and securities are those that are unable to move from one person from one party to another. One instance of such a asset which is also known by the term not-macro instrument, is the federal savings bonds. They can only be used by the person who owns the bond, and are not permitted to be sold to third parties.
Because they aren’t able to be sold on, these securities are also referred to as registered securities or non-transferable security are described as non-liquid.
