There are numerous types of peace deals in the world of Diplomacy. Some are good, some are bad, but each is better than bloodshed. In Vicotria 3 this will be even more pronounced.
A negotiated peace is quite a bit more complex than Capitulation and can involve a whole host of countries that are part of the war. When making peace, countries involved in war are split into three different categories:
War Leaders: This is the main participant on each side. War Leaders can propose peace deals and must ratify any proposed peace from the other War Leader in order for it to take effect.
Negotiators: This is any country that either holds a War Goal or has a War Goal targeting them and who is not one of the War Leaders. Negotiators must ratify any proposed peace deal from both the enemy and their own side in order for it to take effect.
Non-Negotiators: This is any country that doesn’t fall into the above two categories. They don’t play an active role in peace negotiations. Subjects whose Overlord is part of the war are also considered Non-Negotiators, as their Overlord negotiates on their behalf.
For a negotiated peace to happen, the War Leader on either side must first construct and propose a peace deal out of pressed War Goals. Unlike in many of our other Grand Strategy Games, peace deals in Victoria 3 aren’t necessarily just one side making demands - the War Leader can propose a mixed peace deal, in which War Goals are ceded from both sides. Once the War Leader is satisfied with the deal they’re proposing, they then send it out to both sides of the war for ratification.