How does mediation differ from arbitration?

Mediation and arbitration are two different methods of dispute resolution. Mediation and arbitration both involve a third-party, neutral person, to help the parties reach an agreement. However, the two processes are very different. Mediation is a non-binding process where the two parties discuss the dispute and the mediator helps to facilitate a voluntary agreement between the two. The mediator does not have the authority to impose a solution on the parties and the agreement is not legally binding unless both parties choose to sign it. Mediation provides the parties with control over the outcome and encourages cooperation and communication. Arbitration is a binding process, in which the arbitrator is appointed to make a legally binding decision. The arbitrator is given the authority to make a decision on the issues, and the parties must accept it. It is similar to, but more formal than, a trial. An arbitration decision is legally binding, so the parties do not have the same control over the outcome and don’t have the opportunity for cooperation and communication. In short, the main difference between mediation and arbitration is that mediation is a non-binding process in which the parties have control over the outcome, whereas arbitration is a binding process in which the arbitrator has the authority to make a decision.

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How does mediation differ from arbitration?

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