Mediation is considered to be a quick, efficient process for resolving disputes between parties. It’s also flexible and less formal than arbitration or litigation, making it a great option for those looking to settle their disputes quickly and reasonably before they enter the courtroom. But how does the outcome of mediation differ from litigation and arbitration?
What is mediation vs. arbitration?
Mediation is a voluntary process where two or more parties come together to negotiate an agreement. Mediation involves a neutral third party who assists in finding solutions to the dispute.
Arbitration is an alternative method of resolving disputes, but it can be more expensive and less flexible than mediation. Mediation is often a better option than arbitration as it allows each party to have more of a say in the outcome.
Is mediation legally binding?
All parties are free to negotiate their own terms, and they can agree on the terms of the mediation process itself. However, if you reach an agreement through mediation, it is not legally binding. You still have the ability to go to court after reaching an agreement through mediation, but this does not mean that your case will be heard more quickly or easily than if you had gone to court first.
Mediation agreements can be helpful for setting down important details, as well as working out kinks before you take your issues to court. One of the best things about mediation is that both you and your adversary can reach an agreement on your own terms, and customize it to fit both of your needs. With the help of a mediator, you can hammer out a settlement that works best for both of you.