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Difference between Arbitration and Mediation

Difference between Arbitration and Mediation

When two or more people have a dispute, they may need to find a way to resolve it. There are several options for resolution, including arbitration and mediation. The differences between these two methods can be confusing, so let’s take a look at them both.

What is Arbitration?

Arbitration is a process of dispute resolution whereby the parties to a contract agree to submit their differences to an arbitrator for final and binding determination. The term “arbitration” is often used interchangeably with “mediation,” but the two are distinct processes. Unlike mediation, which is informal and non-binding, arbitration is formal and binding. Arbitration is also generally quicker and less expensive than litigation. Because of these advantages, Arbitration has become increasingly popular in recent years as a means of resolving commercial disputes.

What is Mediation?

Mediation is a process in which a mediator helps two or more people to reach an agreement. The mediator does not make decisions for the parties, but instead helps them to communicate effectively and to find a solution that is acceptable to everyone.

Mediation can be used to resolve disputes of all kinds, including family disputes, workplace disagreements, and contract negotiations. Mediation is an alternative to traditional methods of dispute resolution, such as litigation, and can often save time and money.

Mediation is confidential, and anything said during mediation cannot be used in court. Mediation is voluntary, and all parties must agree to participate. If mediation is successful, the parties will sign a Mediated Settlement Agreement which will be binding. Mediation can be an effective way to resolve disputes, and it is often faster and cheaper than going to court.

Difference between Arbitration and Mediation

Arbitration and mediation are two different processes that can be used to resolve disputes. Arbitration is a formal process in which a neutral third party hears both sides of the dispute and makes a binding decision. Mediation, on the other hand, is an informal process in which the parties attempt to reach their own agreement with the help of a mediator. While arbitration can be faster and cheaper than going to court, it can also be less fair, since the arbitrator’s decision is final and cannot be appealed. Mediation, on the other hand, is typically more time-consuming and expensive, but it gives both parties more control over the outcome of the dispute.


So, what is the difference between arbitration and mediation? The main difference is that in arbitration, a neutral third party hears both sides of the dispute and makes a decision that is binding on both parties. In mediation, the mediator does not make a decision for the parties but helps them come to an agreement themselves. If you are considering using one of these methods to resolve a conflict, it’s important to understand the differences so you can choose the right process for your situation.

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