A mediation settlement whether formal or informal is the considered outcome or final step in the mediation process. It is the decision and agreement made by the parties involved in the resolution process. This can also be referred to as a binding agreement after it has been signed.
This process of settlement takes place outside of the court and therefore is considered to be a less costly form of settling legal disputes. But unlike arbitration which is a required process, mediation is a voluntary one. Usually most parties involved decide to opt for this to save on costs.
There may be some instances where one of the parties involved will not agree with the conditions stated in the settlement. That party disagreeing is free to say his or her side and suggest the next steps. However, it is important to remember that a mediation settlement will only be considered valid if both parties reach an agreement.
In this case, a mediation process is really essential because it would determine if there is a chance for a mediation settlement. If the process of resolution works properly then both parties would be able to agree on things that would fix the conflicts between them. Again, mediation settlement is considered binding because when both parties undergo this process, they are ending the gap caused by misunderstandings, conflicts and problems that happened. It’s also worthy to note that once that the documents related to the agreement are signed, changes could no longer be made by any of the parties. By affixing their signatures, the mediator can then confirm that everyone is in agreement and no conflicts would happen. This then results in a mediation settlement.