These standard clauses are to be inserted into a commercial agreement to give parties the opportunity to resolve disputes through mediation before litigation or arbitration is commenced. They are based on clauses provided by the Centre for Effective Dispute Resolution (CEDR). They have been altered only to conform with Practical Law's house style.
The clauses provide a framework for the parties to resolve disputes through formal mediation. They are an alternative to the Multi-tiered dispute resolution procedure clause (also known as an "escalation clause") which provides for the parties to try to reach settlement through informal negotiation prior to formal mediation either before or in parallel to court proceedings, see Standard clause, Multi-tiered dispute resolution procedure.