Ireland: B2B Mandatory Mediation Clause Precedent—Procedure, Mediator Appointment, Condition Precedent to Proceedings, Costs/Limitation Implications, and Cross-border Considerations

Published by a Lexis+ Ireland - Dispute Resolution expert

Precedents

Nature of the clause

This Precedent is a short-form clause designed for business-to-business (B2B) commercial contracts made between businesses, providing for mandatory mediation in the event a dispute arises out of the agreement. The clause requires the parties to seek to settle disputes arising between them under this clause. Unlike litigation or arbitration clauses, its purpose is for the parties to attempt to resolve the matter with the assistance of a mediator, without the need for formal contentious proceedings.

What is mediation and why have a mediation clause?

Mediation is a form of alternative dispute resolution (ADR) in which an independent third-party mediator follows a structured process to facilitate an agreed settlement between parties to a dispute. It is, by its nature, a non-binding dispute resolution process; that is, any agreement reached in mediation only becomes binding on the parties if they enter into a settlement agreement. Mediation affords the parties a high degree of control compared with litigation and offers a collaborative process for dispute resolution. Further advantages of mediation over arbitration or litigation include:

cost
speed
confidentiality

If a dispute between the parties is not settled through mediation, it will, unless the parties agree otherwise, need to be...

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Web page updated on 22/05/2026

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