Mediation Agreement
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What is the mediation agreement?
A mediation agreement is a legal contract between disputing parties who agree to resolve the dispute through mediation instead of court or arbitration. The present template outlines the most common provisions a solid mediation agreement must have, including a confidentiality clause, appointment of mediator, termination, dispute details, etc.
There are a lot of reasons that make a mediation agreement so popular:
- First, it adds clarity in the dispute resolution.
- Second, it ensures confidentiality regarding the dispute details.
- Third, it acts as a cost-effective conflict resolution compared to court litigation.
It is important to remember that a mediation settlement agreement cannot be used for disputes arising due to divorce, child custody, criminal offenses, or disputes involving state or federal public interest.
What does the mediation agreement template include?
A solid and well-drafted mediation agreement template must include the following important elements:
Details of the Parties
Each contract template must define full names, addresses, and contact information about the parties signing this agreement.
On top of that, the parties whose names are in the text of a contract should put their signatures. Without putting a signature at the end of a contract, a document cannot become enforceable.
Finally, parties to a mediation settlement agreement template must define the reason for a dispute in detail.
Appointment of Mediator
A mediator is an individual who is authorized to participate in the mediation process and help to find a workable solution out of an existing dispute.
In the U.S. there is no unified federal accreditation system for certification of mediators. Therefore, their certification is performed at the state level. Make sure that a mediator whom you appoint has a right to perform the mediation in a select state.
The parties to a mediation contract sample could name the mediator’s name directly in the text of a contract or specify the period of time within which a mediator should be appointed.
Confidentiality and Nondisclosure
Another essential element for every mediation contract sample is a confidentiality obligation of the parties. This obligation relates not only to the parties who sign this agreement but also to a mediator who participates in the mediation. All in all, parties are not allowed to share or disclose information they exchange during the mediation process. Usually, the non-disclosure duty remains effective indefinitely even after the mediation ends.
Parties could also sign a separate non-disclosure agreement to regulate confidentiality obligations in more detail.
Applicable Law
A mediation contract template shall include the reference to a state whose laws apply to the execution, performance, and termination of this agreement. There are no specific rules on how parties could select a state. In fact, they could choose any state they want to. However, in most of the cases, parties choose:
- a state where either party is based or registered;
- a state where a mediator is located;
- a state where a subject of the existing dispute is located (e.g., rented property under a lease agreement).
Who should use this mediation contract template?
Mediation of disputes is accessible and open for any types of conflicts between individuals, businesses, and organizations. This mediation contract template could become helpful in either of the following situations:
- Contractual Disagreements. Business partners and counterparties may have disputes from time to time in connection to the performance of various types of contracts, including delivery of goods, provision of services, business lease violation, etc.
- Employment Relations. Conflicts between workers and management are a common thing at the workplace. An employee may complain about his or her employment contract being violated, harassment at the workplace, etc.
- Lease Relations. A sample mediation agreement template could help to mitigate a dispute between tenants, landlords, or property managers.
- Professional Mediators. If you are invited to act as a mediator, you need to have a solid mediation settlement agreement template to offer the parties to a dispute.
How to customize a mediation agreement at FasterDraft?
To get a fully customized legal document template, follow a few easy steps below:
- Click the “Create Document” button.
- Answer simple questions in the form.
- Select a template format—PDF and Word.
- Make a payment.
- Download the mediation agreement form Word and PDF.
Table of content
Frequently Asked Questions (FAQ)
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1. What is a mediation agreement template used for?
This mediation agreement template is used to mitigate an existing dispute or conflict between the parties instead of going to the court or arbitration. Mediation settlement is known as the first and most cost-effective dispute resolution strategy.
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2. Is a mediation agreement legally binding?
The decision to sign a mediation contract sample is both parties’ choice. No one could be forced to participate in mediation, except for the will. However, once the parties sign a mediation settlement agreement, it becomes legally binding and mandatory for the parties involved.
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3. What should be included in a mediation agreement form?
A mediation contract sample is a simple and straightforward legal document that usually includes:
- identification details of the parties involved;
- details of a dispute;
- name of appointed mediator;
- split the mediation costs between the parties;
- termination rules;
- confidentiality obligation of both parties; and
- applicable law.
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4. Can I modify this mediation agreement template for business disputes?
Yes, this mediation settlement agreement could be customized for various types of disputes, including business disputes between founders, shareholders, or counterparties under commercial contracts.
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5. Can a mediation agreement be enforced in court?
No, a mediation agreement cannot be enforced in a court. Besides that, all discussion and written documents that parties exchange with each other during the mediation are not admissible in a court by default.
However, if in the course of the mediation parties reach an agreement, they sign a so-called settlement agreement. In that case a settlement agreement is admissible in the court proceeding and could be enforced in a court in certain circumstances.
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