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Please make the most of the mediation mechanism

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  • Last updated:2019-01-03
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Please make the most of the mediation mechanism

1. Aim of the mediation mechanism

It is common to see the litigation parties argue seriously each other in the court. After years’ of litigation, both parties are exhausted and come out like cripples. To quickly solve disputes and avoid the hurt of feelings, it is necessary to set up a mediation mechanism.

2. Advantages of mediation

(1) Saving money :No money is charged in petitioning for mediation and if it fails, there will be no loss either.

(2) Saving time :Litigation takes time whereas mediation is convenient.

(3) In a litigation, it is unavoidable for the two parties to make fierce attacks and vehement defenses; whereas mediation is done by the judge or a mediation committee member and the two parties' opinions are respected during the process. There is ample time for use, the atmosphere is not hurting, and therefore, there is a greater chance of success.

(4) Speaking freely

If the mediation fails, the statements and concessions made by either party during the process of conciliation shall not be used as the basis of ruling in the court. Therefore, you don't need to worry that your words will be used against you in the ruling made by a court.

(5) Greater chance for compensation

As the mediation is done out of free will, a debtor is more likely to pay back spontaneously. The creditor doesn't need to pay 0.8 percent charges required in petitioning for a compulsory execution. If the debtor refuses to honor the terms of the reconciliation, the reconciliation agreement has the equal validity of a verdict, and thereby the creditor may demand the court to make a compulsory execution by law after presenting the reconciliation agreement and paying the execution charges.


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