Jigsaw piece puzzle

Compromise: Definition, Example and Related Terms

What is a Compromise ?

In life, we often have to give and take, and not just when you're trading cards with friends or deciding how many slices of pizza everyone gets at a party. This idea is also a crucial part of negotiations and legal agreements, and it's called 'Compromise'. In the world of contract law, a compromise is when all parties involved in a dispute or negotiation decide to make some concessions, which means giving up some of their demands or wants, to find a middle ground. It's a way to settle a conflict where everyone gives up a little to reach an agreement everyone can live with.

For example, imagine you're negotiating with a friend for the last slice of pizza. You want the whole piece, but so does your friend. You might suggest a compromise: you could cut the last piece in half. You each get less than you originally wanted, but you both end up somewhat satisfied because you both get a share. This is how a compromise works in basic terms - it's all about give and take!


  • Scenario Compromise
    Two tech companies arguing about pricing for a product one of them is selling. They might compromise by agreeing on a lower price than the seller wanted but a higher price than the buyer was originally willing to pay.
    A manufacturing company and a distributor disagree over the delivery timeline for goods. They could compromise by extending the deadline but arranging for a faster future delivery schedule.

Related terms