Negotiation breakdown occurs when parties involved in a negotiation fail to reach an agreement. This can happen due to various reasons, such as miscommunication, unrealistic expectations, or a lack of trust. When negotiations break down, it often leads to frustration and can damage relationships between the parties involved.
In some cases, a negotiation breakdown may result in the need for mediation or arbitration to resolve the conflict. Mediation involves a neutral third party helping the disputing parties find common ground, while arbitration involves a third party making a binding decision. Both methods aim to restore communication and facilitate a resolution.