Arbitration and mediation are both alternatives to traditional litigation in resolving disputes. However, there are some key differences between the two.

Arbitration is a formal process where a neutral third party, known as an arbitrator, makes a binding decision to resolve the dispute. The decision made by the arbitrator is legally binding and enforceable in court.

Mediation, on the other hand, is a less formal process where a neutral third party, known as a mediator, helps the parties to reach a mutually-agreed upon resolution. The mediator does not make a decision, but rather facilitates communication and negotiation between the parties to help them reach a settlement. The agreements reached in mediation are not legally binding and the process is voluntary.

In summary, arbitration is a formal process where a decision is made by an arbitrator, while mediation is an informal process where a neutral third party helps the parties to reach a mutually agreed upon resolution.