Best Alternative to a Negotiated Agreement (BATNA) is a term used in negotiation theory to describe a party's course of action if a negotiation fails to produce an agreement. In other words, BATNA is the next best option available to a party if a negotiation does not result in a satisfactory outcome.
BATNA is important in negotiations because it provides a standard against which the proposed agreement can be evaluated. If the proposed agreement is better than a party's BATNA, it may be in that party's interest to accept it. If the proposed agreement is worse than a party's BATNA, then it may be in that party's interest to reject the agreement and pursue their BATNA instead.
A strong BATNA is considered an important negotiation skill, as it gives a party more leverage in negotiations and improves their chances of achieving a favorable outcome. Therefore, it is recommended that parties identify and evaluate their BATNAs before entering into a negotiation.