Negotiation is a dialogue between two or more parties aimed at reaching an understanding or agreement. It involves parties trying to gain advantage for themselves while also aiming for compromise. Negotiation occurs in various contexts like business, government, legal proceedings, and personal situations. It follows stages including preparation, discussion, clarifying goals, negotiating towards a win-win solution, agreeing on a course of action, and implementing it. The attitude, interpersonal skills, and knowledge of those involved are important elements to consider.