In a negotiation, a compromise is an agreement in which both parties in the negotiations agree to give up something they want in order to get another thing that they think is better in return. A compromise agreement usually happens when the negotiations arrive at a win-lose situation. This is a situation in which the negotiations are at a point when things will be divided up and what one party will get, the other side will lose. By agreeing to a compromise, both sides will not be able to get what they want but by making certain concessions, both parties end the negotiations getting some of the things that they want but both parties will leave home with something.
There are two ways in which to arrive at a compromise. One is for the parties involved in the negotiations to continue their talks – going back and forth with offers, counter offers and concessions until they arrive at an agreeable arrangement. This first way of arriving at a compromise is usually used when the negotiations revolve around a single issue.
The second way to arrive at a compromise is usually used when negotiations revolve around more than one issue or item. In this case, additional concessions will need to be talked about. The basic premise of this type of negotiations is based on a give and take. Each party in the negotiations gives something that they feel is not too important for their needs but they see as valuable to the other party. The other party also does the same until a balance of sorts is agreed upon.