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Mediation is an informal dispute resolution process run by a trained third party, called a mediator. Mediation provides a way for participants to talk. It gives the participants a safe forum to explain their perception of the problem, and allows the process of understanding to begin, which in turn will lead to an agreement to find a resolution to the conflict. The process is voluntary.
Mediation is used for community and neighbourhood conflicts, separation agreements (family mediation) elder care (aging decision conflict), landlord tenant issues and other disputes.
Arbitration involves adjudication by a third-party neutral. While it is possible to structure arbitration to be non-binding, most arbitration proceedings are designed to be binding.
Arbitration will in most instances come about by agreement of the parties, either due to a pre-existing contract or based on the specific terms of an arbitration agreement entered into after the dispute has arisen.