What Is Non-Negotiable?

The term non-negotiable means something is not open for compromise, bargaining, discussion, or revision. It is widely used for contracts and prices of goods and services that are not open for negotiation.

If an item is non-negotiable, it simply means that it is not open for negotiation.

So, if the price of a good or service is non-negotiable, it means that you cannot buy it at a different price. You can only buy it at the price that has been ascertained.

Similarly, if a contract is non-negotiable and all parties have signed it, it cannot be re-negotiated and remains the same. The term non-negotiable can also sometimes mean that ownership of a security cannot be transferred.

Non-Negotiable Items

Non-negotiable Document

An item can also be considered non-negotiable if one of the parties involved in the transaction does not want any changes to take place to the transaction. The prices of goods and services as mentioned in a contract cannot be negotiated. The non-negotiable element can be added to any contract that the parties want to keep unchanged forever.

For example, a cheque is a non-negotiable instrument that can only be cashed to provide the amount it is written and signed for. Although it can be exchanged or transferred if negotiation takes place with the issuer of the cheque, the document itself is non-negotiable.

Non-Negotiable Prices

Asking price of many goods and services is non-negotiable meaning that you cannot haggle to get them for a lower price. Although some sellers allow negotiation, it is unwelcome and disliked by most sellers. Online vendors also do not allow price negotiation.

Some markets allow negotiation such as real estate. The asking price of a house is not exactly the last price that the property owner is willing to sell it for. So even if a house is selling for $220,000, there is room for negotiation.

The property owner might agree to the last price of $210,000. This is because, in property purchases, both buyers and sellers want to close the deal at the best price they can get. Also, there are very limited numbers of buyers who are willing to purchase a house.

On the contrary, a huge seller such as Target sells items at non-negotiable rates because the customers are happy to pay the non-negotiable price. So many people are in line to buy low-priced items at a Target store, that the store can sell them on a take-it or leave-it policy.

Non-Negotiable Conditions in a Contract

A non-negotiable contract contains a condition that the contract cannot be negotiated. This can be a job offer, where the salary of the employee is fixed and cannot be negotiated. So, the interviewee who has been offered the job can take it or leave it. It may also apply to work hours or days of the week that an employee must work for the company.

Rental and lease agreements can also be non-negotiable once they are drafted. If the contract conditions such as a 10% annual increase in rent, and the person who is renting the property agrees to it. They won’t be able to negotiate in the future because they agreed to it in their contract.

Non-Negotiable Financial Instruments

Sometimes non-negotiable can also refer to non-marketable or non-transferable securities. Some non-negotiable financial instruments cannot be transferred to another person or party. For example, government savings bonds are non-negotiable meaning that they cannot be transferred or sold to another party.