Two documents with the same name
The phrase is used for two different things. One is the agreement to mediate, signed before the session, which usually covers the mediator's role, fees, confidentiality, and an understanding that the mediator will not be called as a witness. The other is the settlement reached through mediation, which may start as a term sheet or memorandum of understanding and later become a full settlement agreement. Each deserves attention: the first shapes what can be said and shared during the process, and the second determines whether the dispute is actually over. People often sign the first without reading it and rush the second at the end of an exhausting day.
When a term sheet becomes binding
Whether a short signed document is enforceable usually depends on its wording and on what the parties intended, including whether it says a formal agreement will follow and whether material terms were left open. In New York, a settlement of a pending case is generally expected to be in a writing signed by the party or its lawyer, or placed on the record in court, so an oral understanding in the hallway may not hold. Mediated settlements are enforced like other contracts, which means vague language about payment timing, releases, or confidentiality can turn into a new dispute. Bring your own list of must-have terms to the session so that nothing important is left for later.
Reviewing the language before you sign
When we review a mediation agreement for you, we look at who is released and from what, whether the release runs both ways, and how payment and any default will be handled. We check confidentiality and non-disparagement terms against what you will actually need to say to employers, family, regulators, or tax advisers, and we flag reporting consequences that may follow from how a payment is described. If a case is pending, we confirm how it will be discontinued and when. For an agreement to mediate, we review the confidentiality terms and the fee split before the session begins. The point is to leave the room with a document that does what you think it does.
