Posted on

Differences to Know Between Mediation and Arbitration

Even with all the precautions taken, business disputes may arise. These can cause problems for your financial goals and day-to-day operations. The best thing to do is to resolve a dispute quickly and without any financial headaches. Neglecting to resolve a dispute can make it more costly and emotionally draining.

It is crucial to understand your options when you face a dispute. Alternative Dispute Resolution (ADR), has two forms in common: mediation and arbitration. You can visit the website to know more details about mediation and arbitration at

Mediation and arbitration have two main differences: the formality of the process as well as how final decisions are made. Both sides must reach an agreement on a resolution in mediation.

An arbitrator, however, can make final decisions without the consent of both sides. Arbitration can also be used to swear in formalities, which is not used in mediation.

ADR can be used at any stage of a dispute. It may even be required by your contract. A contract may contain a clause that allows for mediation or arbitration. It could also outline the terms of the ADR process.

The reason mediation is more popular than arbitration is that a mediator doesn't have the power or authority to make a decision without consent from all parties. 

The mediator's role in presenting each side with its strengths and weaknesses and sometimes, more importantly, the strengths or weaknesses of the case of the opposing party is to help them understand their case.