Certified Professional Contract Manager (CPCM) Practice Exam

A concession in negotiation is fundamentally a compromise or something that one party agrees to give up in order to facilitate an agreement or advance the negotiation process. It involves making a trade-off where one party relinquishes certain demands or expectations, often to meet the other party's needs or concerns. This act of concession can serve to build goodwill and trust, demonstrating a willingness to collaborate. By making concessions, negotiators can create a more favorable environment for reaching a mutually beneficial outcome.

The other options do not accurately capture the essence of what a concession is. Enhancements offered by the other party do not pertain to the concept of giving something up, while a final agreement refers to the conclusion of negotiations rather than an action taken within them. A formal proposal to adjust pricing also represents a specific request or offer rather than a concession made during discussions.