Contracts & ExecutionQuestion 832 of 1605
How does mediation differ from binding arbitration?
a.Mediation is only available for public works
b.Mediation always results in a legally binding award
c.Mediation requires a judge and jury
d.In mediation a neutral facilitates settlement but cannot impose a decision, whereas an arbitrator can render a binding decision
Explanation
In mediation, a neutral third party helps the disputing parties communicate and negotiate a voluntary settlement but has no power to impose a decision; any resolution requires the parties' agreement. In binding arbitration, by contrast, the arbitrator issues a decision the parties are bound to follow. Mediation does not use a judge and jury and is widely available in private and public disputes alike, not limited to public works.
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- In the absence of a 'time is of the essence' clause or a specified completion date, a contractor is generally obligated to complete the work:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)