Non-Negotiable

Non-Negotiable

Non-negotiable describes the price of a good or security that cannot be adjusted, or a part of a contract that is considered a requirement by one or both involved parties. When one party sets a non-negotiable price, the option to attempt to negotiate has been effectively removed by the first party’s unwillingness to participate in such a conversation. An item can be considered non-negotiable if one party involved in a transaction is not willing to make any changes to a condition that has been set in place. An example of a non-negotiable instrument, also referred to as a non-marketable instrument, would be a government savings bond.

Non-negotiable describes the price of a good or security that cannot be adjusted, or a part of a contract that is considered a requirement by one or both involved parties.

What Is Non-Negotiable?

Non-negotiable means not open for debate or modification. It can refer to the price of a good or security that is firmly established and cannot be adjusted, or a part of a contract or deal that is considered a requirement by one or both involved parties. Additionally, the term can relate to a good or security whose ownership is not easily transferable from one party to another.

Non-negotiable describes the price of a good or security that cannot be adjusted, or a part of a contract that is considered a requirement by one or both involved parties.
An item can be deemed non-negotiable if one party involved in a transaction is not willing to make any changes to a condition that has been set in place.
Additionally, the term can relate to a good or security whose ownership is not easily transferable from one party to another, such as government savings bonds.

Understanding Non-Negotiable

An item can be considered non-negotiable if one party involved in a transaction is not willing to make any changes to a condition that has been set in place. This could relate to the price for a particular good or service, an element within a contract, or a financial product that cannot be exchanged or transferred to a new owner, even through the use of secondary markets.

Negotiable is the opposite of non-negotiable. When an asking price or contract is referred to as negotiable, it means that it is not set in stone and can be adjusted depending on the circumstance. Likewise, instruments of this nature can be exchanged or transferred with ease.

For example, a check would qualify as a negotiable instrument as it can be presented to a financial institution in exchange for actual currency. Funds in physical currency, such as dollar bills, are also considered to be negotiable instruments because they can be easily exchanged between parties. Most securities are negotiable, too, provided that all proper legal documentation is included.

Examples of Non-Negotiable

Non-Negotiable Prices

When an asking price is described as non-negotiable, it means it is not possible to haggle over it. When one party sets a non-negotiable price, the option to attempt to negotiate has been effectively removed by the first party’s unwillingness to participate in such a conversation.

For example, a homeowner may be unwilling to sell their property unless a buyer offers at least $250,000. If the individual deems the asking price to be non-negotiable, a bid of $245,000 will be rejected.

Important

A big company such as Walmart Inc. is less likely to make price concessions than a much smaller retailer because it often can easily find other customers willing to pay what it wants.

In regards to securities, if an asset is referred to as a registered security, its price cannot be changed. This can apply to savings bonds as they have a specified face value, or par, and cannot be negotiated to any other value.

Non-Negotiable Contract Elements

A contract may contain certain non-negotiable stipulations. For example, a job offer might offer scope to negotiate on salary, but be rigid about other terms, such as the number of days that an employee can take for annual leave.

Moreover, in the cases of leases on rental properties, the amount due as payment may be considered non-negotiable as it is often a fixed price that must be provided by the tenant to the property owner.

Non-Negotiable Financial Products

Non-negotiable securities and products are those that cannot be transferred from one party to the next. An example of a non-negotiable instrument, also referred to as a non-marketable instrument, would be a government savings bond. They can only be redeemed by the owner of the bond and are not allowed to be sold to other parties.

Because they cannot be sold on, these products, also known as registered securities or non-transferable securities, are described as illiquid.

Related terms:

Check

A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee. read more

Cost, Insurance, and Freight (CIF)

Cost, insurance, and freight (CIF) is a method of exporting goods where the seller pays expenses until the product is completely loaded on a ship. read more

Currency

Currency is a generally accepted form of payment, including coins and paper notes, which is circulated within an economy and usually issued by a government. read more

Economics : Overview, Types, & Indicators

Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. read more

Face Value

Face value is the nominal value or dollar value of a security stated by the issuer, also known as "par value" or simply "par." read more

Fair Value

Fair value can refer to the agreed price between buyer and seller or, in the accounting sense, the estimated worth of various assets and liabilities. read more

Financial Instrument

A financial instrument is a real or virtual document representing a legal agreement involving any kind of monetary value. read more

Illiquid

Illiquid is the state of a security or other asset that cannot quickly and easily be sold or exchanged for cash without a substantial loss in value.  read more

Inflation

Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy. read more

Instrument

An instrument is a contract or medium by which something of value is transferred, held, or accomplished. read more