Which of the following best describes the Zone of Possible Agreement (ZOPA)?

• A. The boundary where one side concedes all terms.
• B. The starting point for each side’s demands.
• C. The area of overlap between each party's bargaining range.
• D. The gap where no agreement is possible.

Answer: (C)

In negotiation, the Zone of Possible Agreement is the overlap between each party’s acceptable terms—the range where both sides could reasonably agree. If the buyer is willing to pay up to a certain amount and the seller is willing to accept at least a certain amount, the ZOPA is the portion where those two ranges meet. For example, if the buyer would pay up to 100 and the seller would accept at least 70, the ZOPA is 70 to 100. Any price within that span could satisfy both sides, making a deal possible. If there’s no overlap, no ZOPA exists, meaning a agreement isn’t feasible under the given constraints.