Mediation is a process of dispute resolution in which a neutral third person assists the parties involved in a dispute to negotiate their own settlement.
Mediation is a process where by two or more parties agree to refer their dispute to a mediator. The mediator will assist the par ties in reaching a mutually agreeable settlement. If an agreement amongst the parties is not reached, they are then open to pursue whatever other action they desire, (i.e. arbitration or legal proceedings).
Arbitration, a form of alternative dispute resolution (ADR), is a technique for the resolution of disputes outside the courts. The parties to a dispute refer it to arbitration by one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"), and agree to be bound by the arbitration decision (the "award"). A third party reviews the evidence in the case and imposes a decision that is legally binding on both sides and enforceable in the courts.