Mediation Agreement

A Mediation Agreement is a contract between parties who agree to attempt to resolve their dispute through mediation, a form of alternative dispute resolution. In mediation, a neutral third party (mediator) facilitates negotiation between the parties but doesn't impose a decision like an arbitrator or judge would. The agreement specifies mediation procedures, selection of mediator, cost allocation, timeline, and confidentiality provisions. Unlike arbitration, mediation is typically non-binding unless the parties reach a settlement, which is then documented in a separate settlement agreement. Mediation agreements often include provisions that statements made during mediation cannot be used as evidence in subsequent litigation. Mediation is generally faster and less expensive than litigation and allows parties to maintain control over the outcome. Many contracts include mediation clauses requiring this step before pursuing arbitration or litigation.