Arbitration is often used as a quick and relatively inexpensive way to settle contract disputes. It can be final and binding if the parties so agree.
Resolution of a contractual dispute by Arbitration is frequently agreed to by the parties entering into a contract. Contracts usually include a specific clause that the parties agree to the Arbitration decision being a binding decision. The parties therefore agree not to pursue their complaints in a court of law.
Mediation through Arbitration is similar to a court hearing but can be done on the papers where oral evidence is not required. Each party submits documentary evidence and witness evidence before the Arbitrator to make his case. The Arbitrator weighs the evidence and draws a conclusion giving reasons, either deciding for one of the parties or proposing a unique solution.