What is the difference between mediation and arbitration

Mediation and arbitration are two forms of alternative dispute resolution (ADR) techniques used to resolve conflicts outside of court. The main difference between mediation and arbitration is that mediation is a non-binding, voluntary process in which a neutral third party acts as a facilitator to help the parties reach a mutually acceptable agreement. In contrast, arbitration is a binding process in which a neutral third party acts as a judge and makes a decision to resolve the dispute after hearing both sides of the argument. In arbitration, the decision made by the arbitrator is usually final and binding, and the parties must abide by the decision, whereas in mediation, the parties can choose to accept or reject the mediator's suggestions or proposals.