Zone Of Possible Agreement

AAA

DEFINITION of 'Zone Of Possible Agreement'

Not a physical place, the zone of possible agreement is considered an area where two or more negotiating parties may find common ground. It is this area where parties will often compromise and strike a deal.

INVESTOPEDIA EXPLAINS 'Zone Of Possible Agreement'

In order for negotiating parties to find a settlement or reach an agreement they must work towards a common goal and seek an area that incorporates at least some of each party's ideas. This area of compromise is considered the zone of possible agreement.

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Negotiated Sale

    A method of offering municipal bonds or similar financial instruments ...
  3. Friendly Takeover

    A situation in which a target company's management and board ...
  4. Merger

    The combining of two or more companies, generally by offering ...
  5. Tender

    To invite bids for a project, or to accept a formal offer such ...
  6. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. The Basics Of Mergers And Acquisitions
    Options & Futures

    The Basics Of Mergers And Acquisitions

  3. Easy Ways To Cut Rental Costs
    Options & Futures

    Easy Ways To Cut Rental Costs

  4. What is an alienation clause?
    Investing

    What is an alienation clause?

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center