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Category: Contract Law

Mediation

A voluntary dispute resolution process where a neutral third party helps conflicting parties negotiate a mutually acceptable settlement without imposing a binding decision.

What Is Mediation? Mediation is a form of alternative dispute resolution (ADR) where a trained neutral mediator facilitates negotiation between disputing parties. Unlike arbitration, the mediator does not impose a decision. Instead, the mediator helps parties communicate, identify issues, and explore potential solutions to reach a voluntary agreement. ## The Mediation Process - Opening statements by each party and the mediator - Joint discussion to identify key issues and interests - Private caucuses where the mediator meets with each party separately - Negotiation facilitated by the mediator - If successful, parties sign a written settlement agreement ## Advantages of Mediation Mediation preserves relationships by encouraging cooperative problem-solving rather than adversarial confrontation. It is typically faster and less costly than litigation or arbitration. Parties maintain control over the outcome and can craft creative solutions that a court could not order. Mediation is confidential, meaning discussions cannot be used as evidence in later proceedings. Many contracts include step clauses requiring mediation before arbitration or litigation.