Mediation and arbitration may or may not be binding, depending on the dispute resolution clause or contract agreed upon between the parties. In most cases, mediation is not binding. Both must use a neutral third party who has no personal interest in the case.
Furthermore, in mediation, the mediator does not judge the case. Instead, the mediator helps the parties negotiate a solution to the issue and eventually come to an agreement. Often, the parties or their lawyers will then put their agreement down in writing that both parties sign.
On the other hand, with arbitration, the arbitrator may act as the judge by making decisions about evidence and giving written opinions. Those opinions may or may not be binding. Other differences include the following:
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