Can a contract require parties to settle disputes through mediation?

How should a mediation clause be structured?

A strong clause clearly explains how mediation starts and works. This often includes a written notice requirement, how a mediator is selected, where mediation happens, and how costs are shared.

It should also state that mediation is required before filing a lawsuit or arbitration. Clear timelines and steps help avoid confusion or delays.

What happens if one party refuses mediation?

Refusing to participate can be treated as a failure to follow the contract. A court may require mediation before allowing the case to proceed.

If the refusal continues, the other party may be allowed to move forward with litigation after showing they made a good-faith effort.

What to do next...

1. Define when and how mediation is triggered.
2. Include clear timelines and selection process for a mediator.
3. State that mediation is required before other actions.
4. Plan for what happens if one side does not respond.

What to consider in your specific situation

While mediation clauses are enforceable, how they work depends on your contract design.

• The clarity and detail of the clause.
• Whether timelines and procedures are defined.
• The willingness of parties to participate in good faith.
• The type and value of disputes.
• The cost and logistics of mediation.
• Local rules on enforcing ADR clauses.

A well-drafted mediation clause can reduce conflict and cost, but it needs clear structure to work effectively. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.