Mediation is a form of negotiation that is facilitated through a third party. Mediation is meant to help resolve a dispute without involving a formal decision in the process. This is ideally used when multiple parties cannot come to an agreement and need a short-term, structured, and engaging process.
There are many instances when mediation is used. For instance, you will see it in a small claim court, housing courts, and family courts. Once a resolution is reached, the mediation agreements are typically made enforceable through contracts and provide a swift and cheap solution as opposed to ligation.