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A Mediation Agreement is a binding contract that sets the ground rules when two parties choose to resolve their dispute through mediation rather than going to court. Under Nigerian law, this document outlines how the mediation process will work, including the mediator's role, confidentiality requirements, and cost-sharing arrangements.

Recognized by Nigerian courts and increasingly popular in commercial disputes, these agreements help parties save time and money while maintaining business relationships. The document typically specifies meeting locations, timelines, and what happens if mediation fails - often following guidelines from the Lagos Multi-Door Courthouse and other Alternative Dispute Resolution centers across Nigeria.

Use a Mediation Agreement when your business faces disputes that could damage valuable relationships or lead to costly litigation. This agreement works especially well for contract disagreements, partnership conflicts, or employment issues where maintaining confidentiality and preserving business ties matters more than winning in court.

In Nigeria's business environment, mediation offers faster resolution than the court system, often taking weeks instead of years. The agreement becomes particularly valuable for commercial disputes exceeding ���10 million, real estate conflicts, and situations where parties need flexibility in crafting solutions. Many Nigerian banks and telecom companies now include mediation clauses in their standard contracts to avoid lengthy court battles.

• Pre-Dispute Mediation Agreements: Built into contracts before any conflict arises, setting rules for future mediation
• Post-Dispute Agreements: Created after conflicts emerge, tailored to specific issues at hand
• Single-Issue Agreements: Focus on resolving one specific business or property dispute
• Comprehensive Agreements: Cover multiple potential disputes across complex business relationships
• Industry-Specific Agreements: Customized for sectors like banking, construction, or oil and gas, following Nigerian regulatory requirements

• Disputing Parties: Business owners, corporations, or individuals who agree to resolve their conflicts through mediation
• Legal Counsel: Nigerian lawyers who draft and review Mediation Agreements to protect their clients' interests
• Professional Mediators: Certified neutrals from organizations like the Lagos Multi-Door Courthouse who facilitate the process
• Corporate Executives: Decision-makers who sign off on mediation as an alternative to litigation
• Industry Regulators: Government bodies that encourage mediation in sectors like banking, telecommunications, and oil/gas

• Dispute Details: Gather specific information about the conflict, including key dates, amounts, and desired outcomes
• Party Information: Collect full legal names, contact details, and authority to sign for all involved parties
• Mediator Selection: Choose a certified mediator from recognized Nigerian ADR institutions
• Timeline Planning: Set realistic deadlines for mediation sessions and final resolution
• Cost Allocation: Decide how mediator fees and other expenses will be shared
• Confidentiality Terms: Outline specific privacy requirements and information handling protocols
• Enforcement Provisions: Include clear terms about the binding nature of any resolution reached

• Party Identification: Full legal names and addresses of all involved parties, including the chosen mediator
• Scope Definition: Clear description of disputes covered under the agreement
• Mediator Powers: Specific authority and limitations of the mediator's role
• Confidentiality Clause: Terms protecting discussions and documents shared during mediation
• Cost Distribution: Clear breakdown of how mediation expenses will be shared
• Time Frames: Specific deadlines for mediation sessions and overall process completion
• Governing Law: Statement confirming Nigerian law applies and jurisdiction details
• Signature Block: Space for dated signatures of all parties and witnesses

A Mediation Agreement differs significantly from an Arbitration Agreement, though both aim to resolve disputes outside court. Understanding these differences helps you choose the right approach for your situation.

• Decision-Making Power: In mediation, parties maintain control over the final decision, while arbitrators make binding decisions like judges
• Formality Level: Mediation offers a more flexible, informal process focused on dialogue, while arbitration follows strict procedural rules
• Cost Structure: Mediation typically costs less and moves faster than arbitration, which often requires formal hearings and evidence presentation
• Enforceability: Arbitration decisions are directly enforceable under Nigerian law, while mediated settlements need both parties' voluntary compliance or a separate court order
• Relationship Impact: Mediation aims to preserve business relationships through collaborative problem-solving, while arbitration often creates winners and losers