10,000 or so City Lords and their soldiers would be able to easily crush the Night Dynasty. With that kind of strength, the Night Dynasty either had to sign the humiliating Contract or be destroyed; there was no need for discussions.
After all, whether or not the Night Dynasty would be destroyed was up to them. If they wanted it to be destroyed, it would be destroyed; if they did not want it to be destroyed, it would not be destroyed. It was all up to how they felt, and the Night Dynasty did not have the power to decide for itself. In front of such a powerful force, all objections were futile, and there was no way to retaliate.
The factions had thought that the Night Dynasty would submit and hand over those regions, Cities, resources, and the bewitching Mo Yao'Er, but it had not responded at all.