The Least Acceptable Agreement (LAA) is the minimum level of agreement or outcome that a party is willing to accept in a negotiation. It is the point beyond which a party would prefer to walk away from the negotiation rather than accept the proposed agreement. The LAA is an important concept in negotiation because it sets a clear boundary beyond which a party will not compromise or make further concessions.
Determining the LAA is a crucial aspect of negotiation preparation, as it helps the party to define their priorities, objectives, and limits. The LAA serves as a reference point during the negotiation, helping the party to assess the value of different proposals and offers and to decide when to walk away from the negotiation if necessary. It is important to note that the LAA may differ from one negotiation to another, depending on the specific circumstances, interests, and goals of the party involved.