The FEAM Mediation Clause
A mediation clause commits parties to talk before they litigate — and routes that conversation to FEAM. Adopt one of the clauses below into your contracts, and any dispute that arises is mediated under the FEAM Mediation Rules, with a settlement that carries the force of a civil-court decree. Choose mediation on its own, or as the first step before arbitration.
From clause to enforceable settlement
A mediation clause needs no prior relationship with FEAM. It simply decides, in advance, that a future dispute will be mediated here first — and mediation reaches a settlement most of the time.
Choose the clause
Mediation on its own, or a step-tiered clause that mediates before it arbitrates.
Insert it into your contract
Drop the clause into the dispute-resolution section of your agreement or template.
File a Request for Mediation
When a dispute arises, either party files with FEAM; the other is notified within 24 hours.
Reach an enforceable MSA
A signed, authenticated settlement has the force of a court decree under the Mediation Act, 2023.
Four things worth knowing
Mediation clauses are shorter and simpler than arbitration clauses — but a few points are worth understanding before you commit a contract to FEAM mediation.
Mediation Act, 2023
FEAM mediation is conducted under the FEAM Mediation Rules and governed by the Mediation Act, 2023. Where the Act is silent, the principles of fair, confidential and voluntary mediation apply.
A settlement that binds like a decree
A Mediated Settlement Agreement, signed by all parties and authenticated by the mediator, has the force of a civil-court decree. It can be challenged only on narrow grounds — fraud, corruption, impersonation or non-mediability — within 90 days.
Online or in person
You can state a preference in the clause or in the Request for Mediation. FEAM supports both fully online mediation and in-person sessions, and will accommodate the parties' preference where practical.
Most commercial disputes — with limits
Most civil and commercial disputes are mediable. Certain subjects listed in the Mediation Act, 2023 are excluded unless a law expressly permits them, so confirm mediability for sensitive matters.
Two ways to commit to mediation
Both clauses are reproduced from Schedule J of the FEAM Institutional Rules. Tap Copy to lift the exact text; in the step-tiered clause, replace each [●] with your own detail before inserting it into your contract.
Mediation-only clause
Use when: you want disputes resolved by a mediated, enforceable settlement — without committing to arbitration. Ready as written; no blanks to fill.
Negotiation → mediation → arbitration
Use when: you want an escalation ladder — talk first, mediate next, and arbitrate only if mediation fails — in a single clause.
A pre-arbitration step won't cost you the right to arbitrate
A common worry with step-tiered clauses is that skipping the negotiation or mediation stage could sink a later arbitration. Under the FEAM Rules it does not — failure to complete an earlier tier does not, of itself, deprive an arbitral tribunal of jurisdiction, unless that tier is an express condition precedent and binding precedent at the seat confirms it. FEAM also rewards mediating first: parties who attempt FEAM mediation before arbitration on the same dispute receive a 10% reduction in arbitration administrative fees.
You don't need a clause to mediate at FEAM
Even without a pre-agreed clause, any party to a civil or commercial dispute may initiate pre-litigation mediation at FEAM before filing suit. FEAM notifies the other party within 24 hours; if they don't respond within five business days, the initiating party is free to proceed to court. It is a low-cost, low-commitment way to test whether a dispute can settle before it escalates.
Adding a mediation clause to your standard contracts?
For organisations standardising dispute resolution across vendor agreements, policies or loan documents, FEAM offers clause-adoption support — including step-tiered clauses that mediate before they arbitrate. Talk to us about rolling a FEAM clause into your templates.
These model clauses are starting points, not legal advice. Adapt them with legal advice to your transaction. Clauses reproduced from Schedule J, FEAM Institutional Rules, Version 1.0 (2026). Mediability of a particular dispute should be confirmed against the Mediation Act, 2023.