Mediation allows the parties to take part in shaping a settlement. It may reduce time, cost and harm to relationships, but requires preparation of the facts and an understanding of acceptable terms.
Consider whether mediation is appropriate
Many disputes involving debt, contracts, property or business relationships may be negotiable. Also consider urgency, limitation periods, the need for interim protection and the parties’ willingness to participate.
Prepare the facts and negotiation options
Organise the chronology, contracts, correspondence, payment evidence and damage calculations. Identify the desired outcome, negotiable proposals and terms that cannot be accepted.
- Facts accepted by both parties
- Disputed issues and supporting evidence
- Proposals on amounts, payment periods and security
- Consequences if no agreement is reached
The mediation process and recording an agreement
A mediator helps the parties communicate and explore options, rather than deciding the dispute as a judge would. Clear explanations and appropriate information help the parties assess their positions.
If an agreement is reached, record the obligations, timeframes and consequences of non-compliance clearly. The legal effect and enforcement procedure should be checked for the particular mediation process before signing.
NoteThe appropriate procedure depends on the dispute and the circumstances. Review the agreement and its legal consequences before signing.