When two parties are in conflict, going to court isn’t always the best option. A Mediation Agreement allows them to try resolving their dispute through a neutral third party—without litigation, high legal costs, or public exposure. This agreement formalises their commitment to work toward a solution through mediation.

Whether you're a business dealing with a contract issue or individuals involved in a personal disagreement, mediation can offer a more constructive path forward.

What is a Mediation Agreement?

A Mediation Agreement is a legally binding document in which two or more parties agree to resolve a dispute through mediation, rather than through litigation or arbitration.

The agreement outlines the scope of the dispute, the appointed mediator, the mediation process, and the responsibilities of the parties involved.

A Mediation Agreement does not resolve the underlying dispute, it only sets the terms for engaging in the mediation process.

If the mediation is successful, the outcome will typically be recorded in a separate settlement agreement.

Why Use a Mediation Agreement?

Using a Mediation Agreement ensures that:

• All parties are committed to a confidential, non-adversarial process
• The scope of mediation is clearly defined, helping focus the conversation
• There’s clarity about costs, scheduling, and mediator responsibilities
• The process remains private, as opposed to a public court dispute
• Parties maintain control, as mediation outcomes are mutually agreed upon and not imposed

It’s particularly helpful for commercial disputes, workplace issues, contract conflicts, and joint ventures gone wrong.

Mediation Agreement – Free Template

This Mediation Agreement (the “Agreement”) is made and entered into by and between:

(1)  [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (“First Party”); and  
(2)  [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (“Second Party”).

Collectively referred to as the “Parties”.

WHEREAS:

A. The Parties are in dispute and wish to resolve the matter through mediation.  
B. They agree to the following terms:

1. Appointment of Mediator
The Parties hereby appoint [Name] of [Company Name], [Company Address], as the mediator to facilitate resolution.

2. Scope of Mediation
The mediation will cover:
- [Specify]
- […]
- […]

3. Mediation Process
- Scheduling: The mediation session will be held at a mutually agreed time, either in person or virtually  
- Confidentiality: All discussions will be confidential and inadmissible in future legal proceedings  
- Good Faith: Both Parties commit to engaging honestly and constructively

4. Costs and Fees
- Mediation costs and the mediator’s fees will be shared equally  
- Each Party is responsible for its own legal and administrative expenses  
- Fees will be agreed in advance and paid promptly

5. Settlement Agreement
If resolution is reached, a separate written agreement will be prepared and signed to formalise the outcome.

6. Termination of Mediation
The mediation process may end upon:
- Written agreement by both Parties  
- Withdrawal by either Party with written notice  
- The mediator declaring that continued mediation is unproductive

7. Miscellaneous
- This document supersedes all previous understandings  
- Any changes to this Agreement must be in writing and signed  
- Neither Party is liable for delays due to events beyond their control (Force Majeure)

8. Governing Law and Jurisdiction
This Agreement is governed by the laws of [Country]. Any disputes shall be resolved exclusively by the courts of [City, Country].

Signatures
This Agreement has been signed digitally.

What Happens After a Mediation Agreement Is Signed?

Once both parties sign a Mediation Agreement:

• The mediation process is scheduled and facilitated by the chosen mediator
• All discussions are kept confidential and without prejudice
• If a solution is reached, it will be captured in a separate settlement agreement
• If mediation fails, either party may proceed with other legal remedies (unless restricted otherwise)

Mediation is non-binding unless a final settlement is agreed—so you’re not locked in unless you sign off on a resolution.

When is mediation appropriate?

Mediation is particularly effective when:

• Parties want to preserve a working relationship, e.g. in commercial partnerships or workplace disputes.
• There is a desire for a faster, less expensive alternative to litigation. 
• Confidentiality is important, as mediation discussions are private and not part of the public record. 
• There is flexibility in how the dispute could be resolved—mediation allows for creative, tailored solutions.
• Communication has broken down, but parties are still willing to engage with guidance.
• Court proceedings are not mandatory, or the court requires mediation first.

Create a Mediation Agreement in minutes with Bind

Bind helps you create a sound and structured Mediation Agreement that reflects your goals and protects your position. In just a few clicks, you can generate a ready-to-sign document and move toward resolving your dispute.