Mediation

From the Latin from Latin 'mediare,' meaning to be in the middle.

In one sentence

A dispute resolution process where a neutral third party (mediator) helps the parties negotiate and reach their own settlement agreement.

Plain English

Mediation is a cooperative approach to resolving disputes where a neutral person (the mediator) helps both parties communicate and find common ground. Unlike an arbitrator or judge, a mediator doesn't make a decision for you; instead, they facilitate discussion and help you and the other party reach your own agreement. Mediation is often faster and cheaper than litigation or arbitration, and it preserves relationships because both parties have a say in the outcome. If mediation fails, the parties can still pursue arbitration or litigation. Many contracts include mediation clauses requiring parties to attempt mediation before escalating to arbitration or court.

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Example

A business partnership dispute goes to mediation. The mediator meets with both partners separately and together, helping them understand each other's concerns. Eventually, they agree to restructure the partnership rather than dissolve it—an outcome neither would have accepted if a judge had simply decided for them.

Used in a sentence

“The contract required the parties to attempt mediation before filing a lawsuit.”

Related terms

Alternative Dispute Resolution (ADR)

Methods of resolving disputes outside traditional court litigation, such as arbitration, mediation, or negotiation.

Arbitration

A private dispute resolution process where an impartial third party (arbitrator) hears evidence and makes a binding decision instead of going to court.

Contract

A legally binding agreement between two or more parties to do or not do something.

Remedy

A legal action or payment a court awards to fix a harm or enforce a right after a breach.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

Offeror

The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.