# Understanding Non-Negotiable: Definitions, Examples, and Financial Impact

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## What Is Non-Negotiable?

Non-negotiable means not open for debate or modification. It can refer to the price of a good, a [security](https://www.investopedia.com/terms/s/security.asp) that is firmly established and cannot be adjusted, or as part of a contract or deal that is considered a requirement by one or both involved parties. Conversely, a negotiable instrument can be transferred, and its price can be negotiated.

Non-negotiable assets should be carefully considered before investing or making financial decisions, as the terms will be final and can affect outcomes.

### Key Takeaways

*   Non-negotiable refers to a price, contract term, or financial product that cannot be altered or transferred.
*   A non-negotiable item, like a government savings bond, is not easily transferable between parties.
*   When a price is non-negotiable, the party is unwilling to modify it, removing any option for negotiation.
*   In contracts, non-negotiable elements might include fixed terms, such as non-alterable rent payments in a lease agreement.
*   Non-negotiable expenses are unavoidable costs like housing and utilities, as opposed to negotiable, less essential expenses.

## Understanding What Non-Negotiable Is

An item is non-negotiable if one party refuses to change the terms. This can include prices, contract terms, or [financial products](https://www.investopedia.com/terms/f/financialinstrument.asp) that can't be transferred, even in [secondary markets](https://www.investopedia.com/terms/s/secondarymarket.asp). Crossed checks from Mexico and other countries are [frequently non-negotiable](https://www.investopedia.com/terms/c/crossedcheck.asp).

Non-negotiable is the opposite of [negotiable](https://www.investopedia.com/terms/n/negotiable.asp). 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 circumstances. Likewise, instruments of this nature can be exchanged or transferred with ease.

For example, a [check](https://www.investopedia.com/terms/c/check.asp) would qualify as a negotiable instrument as it can be presented to a financial institution in exchange for actual [currency](https://www.investopedia.com/terms/c/currency.asp). 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.

## Exploring Non-Negotiable Financial Instruments

Non-negotiable securities, like government savings bonds, can't be transferred between parties. Only the bond's owner can redeem it.

Because they cannot be sold, these products, also known as registered securities or non-transferable securities, are described as [illiquid](https://www.investopedia.com/terms/i/illiquid.asp).  

## Diverse Examples of Non-Negotiable Items

### Understanding Fixed Prices in Transactions

A non-negotiable price means no haggling is possible because one party refuses to negotiate. For example, if a homeowner sets a non-negotiable price at $250,000, they will reject any lower offer, like $245,000.

If an asset is referred to as a [registered security](https://www.investopedia.com/terms/r/registeredsecurity.asp), its price cannot be changed. This can apply to savings bonds as they have a specified [face value](https://www.investopedia.com/terms/f/facevalue.asp), or par, and cannot be negotiated to any other value.

> **Important**
>
> A big company like Walmart 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.

### Identifying Fixed Elements in Contracts

Contracts can include non-negotiable terms. For instance, a job offer might allow salary negotiation but fix the number of vacation days.

Moreover, in the case of [leases](https://www.investopedia.com/terms/l/lease.asp) on rental properties, the amount due as payment may be considered non-negotiable, as it is often a fixed price that the tenant must provide to the property owner.  

## What Is a Non-Negotiable Security?

A non-negotiable security is one that cannot be transferred to someone else. It can only be bought, sold, or traded by the owner. For instance, a government savings bond is considered a non-negotiable security. As such, only the person who owns it can unload it.

## What Does Non-Negotiable Mean on a Money Order?

A money order with the term non-negotiable means that it cannot be transferred to anyone other than the payee. So if the name John Smith appears as the payee, John Smith cannot transfer the money order to someone else. This means that John Smith is the only one who can cash it.

## What Is a Non-Negotiable Expense?

A non-negotiable expense is one that you cannot avoid. This category of expenses include things like your housing (rent or mortgage), utilities, and food. Things like your debt, clothing, and other such expenses may be considered negotiable expenses. That's because you can either do without them or prioritize certain expenses over others.  

## The Bottom Line

Non-negotiable, in terms of finances, means a price and terms that cannot be changed, and whose ownership cannot be transferred. Non-negotiable financial products, such as government savings bonds, cannot be transferred or sold to others, making them inherently illiquid.

The difference between non-negotiable and negotiable assets is that the latter can be easily transferred or adjusted in value.

When dealing with non-negotiable items, it's important to understand the limitations and ensure you're prepared for the fixed terms financially.

> **Article Sources**
>
> 1.  Murray, Daniel E. "[Crossed Checks, Account Payee, and Non-Negotiable Checks: Some Suggestions from Foreign Law](https://repository.uclawsf.edu/cgi/viewcontent.cgi?article=2035&context=hastings_law_journal)." _Hastings Law Journal_, vol. 20, no. 1, January 1968, pp. 273-303.
>     
> 2.  FiscalData. "[How Much Has Been Invested in Savings Bonds This Year?](https://fiscaldata.treasury.gov/treasury-savings-bonds/)"