Why Include a Clause for Contract Mediation


Some individuals may be averse to including a provision for contract mediation contracts because they think that it forces people to participate in a process that should be voluntary. However, inserting a clause requiring contract mediation contracts can establish a plan toward cooperation if an issue does arise in the business relationship. There are a number of benefits of including a provision of this nature in your contracts.

Although parties may not like being forced to participate in mediation, knowing that they will be required to justify their perspective and actions can help arbitrary disputes from arising. This factor can help the parties be amenable to discussing their perspective with a neutral mediator.

Another benefit to having a contract mediation clause in contracts is that it provides a template for the process that will follow. Even though parties can attempt to negotiate once a contract falls through absent such a provision, arguments made only in front of the parties may not be justifiable legal arguments that a neutral mediator will give credence to. Additionally, when such provisions are part of the original contract, valuable time and resources do not have to be wasted while moving toward litigation. Instead, the parties are aware that they are required to mediate their differences before considering other alternatives.

Mediation provides a valuable avenue for people in a business relationship. It can help them resolve problems that arise in the course of business in a quick and cost-effective manner. Whether it is part of the original contract or the parties simply want a peaceful resolution of a contract issue, mediation should be considered.