You can travel in enemy's systems but you can't conquer them. You can attack your enemy in your or in a neutral area. It is a peculiar relation status because it is, to some degree, a peace and a war with other empire both at the same. In default, this relation status is active during each new relation and after finishing a war when a peace treaty's time has ended.
If you are not sure what you can offer click on Suggest terms button - computer will automatically choose a tempting offer for the other side. Sometimes you only have to offer more Dust or resources, although sometimes there may be a situation in which your enemy, despite having good relations with you and a generous proposal, won't agree to your offer. A green plus next to each position, the lower bar shows you what your enemy thinks about your current proposal. In the middle you can choose what you want to offer or what are your expectations from the other side. After writing a demand you must wait a moment to receive an answer from the other civilization. Turning down a demand may result in breaking all deals and that empire may declare a war on your empire. The negotiation bar in the upper part of the screen informs you about what you can demand. The Negotiation Screen opens every time when you click on a symbol or name of a system of a given empire. This can be useful if you are looking for a friend or foe. You can also click on another civilization to see their relations with you. In the Diplomacy Screen you can see your current status and level of relationship (the blue or red bar). If you feel powerful or you are in a good relationship you can demand or ask them for something.
If you make such offer it will, most of the times, be accepted. If you have good relations with other civilizations you can receive a message about a trade or scientific cooperation.
If you don't fulfill them it doesn't necessary mean that a war is nigh, even if they usually say that, but many of those civilizations will tell you about their attitude towards you. If other civilization see you as a weaker one you will often receive a scornful information or demands. Usually, other civilizations don't like when you colonize a system that is close to their borders or when you establish an outpost in their system. The option for negotiations becomes available when you meet a fleet or fly to a system that belongs to other civilization. If you want to have more options then you should develop a few technologies from Empire Development tree. Diplomacy can quickly become an important element that allows you to be in good relations with other civilizations.
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