What is the term for the fallback position if negotiations fail?

The term for the fallback position if negotiations fail is commonly referred to as the "Best Alternative to Negotiated Agreement" (BATNA). This concept is fundamental in negotiation theory and practice. BATNA represents the most advantageous alternative that a party can pursue if the current negotiations do not result in an agreement. Understanding one's BATNA allows negotiators to make informed decisions about whether to accept a proposal or to walk away from the table.

Establishing a strong BATNA is crucial because it empowers the negotiator by providing them with options that can independently meet their needs outside the current negotiation. It enhances their negotiating power and can lead to more favorable outcomes, as it sets the minimum acceptable outcome during the negotiation process. If the terms offered during negotiations are worse than the BATNA, the negotiator can confidently choose to decline and pursue the alternative.

While other terms like "Negotiation Plan," "Alternative Strategy," and "Fallback Option" may seem relevant, they do not capture the specific essence of a fallback position as effectively as BATNA does, which specifically emphasizes the importance of having a well-defined backup if negotiations do not succeed.