Mediation Agreement Malaysia

Mediation Agreement Malaysia: A Comprehensive Guide

When it comes to resolving disputes, mediation has emerged as a popular alternative to litigation. In Malaysia, mediation has gained widespread acceptance as an effective and efficient method of dispute resolution. As a result, the mediation agreement has become increasingly important for businesses and individuals alike. This article provides a comprehensive guide to mediation agreements in Malaysia.

What is a mediation agreement?

A mediation agreement is a legally binding agreement between parties that have agreed to resolve their dispute through mediation. A mediation agreement can be made before, during or after a mediation session. The agreement outlines the terms that will govern the mediation process, including the role of the mediator, the scope of the mediation, and the obligations of the parties. It can also include provisions for the enforcement of the agreement if necessary.

Why is a mediation agreement important in Malaysia?

In Malaysia, mediation is a confidential process that allows parties to come to a mutually acceptable solution to their dispute. Unlike in litigation, there is no winner or loser in mediation. Instead, the focus is on finding a solution that works for all parties involved. The mediation agreement is key to this process, as it sets out the terms of the agreement and ensures that each party is aware of its obligations.

Additionally, mediation agreements in Malaysia are enforceable under the Arbitration Act 2005. This means that if a party breaches the terms of the mediation agreement, the other party can seek enforcement through the courts. Therefore, it is essential to ensure that the mediation agreement is comprehensive and covers all key aspects of the dispute.

Key provisions to include in a mediation agreement

There are several provisions that should be included in a mediation agreement in Malaysia. These include:

1. Scope of the mediation: The agreement should clearly outline the scope of the mediation process. This includes the issues to be addressed and the parties involved.

2. Mediator selection: The agreement should specify the mediator who will facilitate the mediation process.

3. Confidentiality: It is important to include provisions that ensure the confidentiality of the mediation process. This includes confidentiality agreements for all parties and the mediator.

4. Timelines: The agreement should specify the timelines for the mediation process, including the date and time of the first meeting and subsequent sessions.

5. Costs: The agreement should specify the costs associated with the mediation process, including the mediator`s fee and any other expenses.

6. Enforcement: The agreement should include provisions for the enforcement of the agreement, including the consequences of breaching the terms of the agreement.

Conclusion

In conclusion, a mediation agreement is an essential document for any party involved in a mediation process in Malaysia. It sets out the terms of the agreement and ensures that each party is aware of its obligations. As such, it is essential to ensure that the mediation agreement is comprehensive and includes all key provisions. By doing so, parties can be assured that the mediation process will be effective and efficient, and any disputes will be resolved in a satisfactory manner.

Comments are closed.