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  3. Mediation
  4. Commercial Mediation
  5. Mediation Clause in a Contract

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Commercial Mediation

Mediation Clause in a Contract

What is a mediation clause in a contract?

It is an agreement by which the parties undertake not to apply to a court or arbitration until a defined period or circumstance and to settle the dispute with a mediator. Article 7 of the law treats such an agreement as a precondition for starting mediation.

Will a court hear the dispute despite the clause?

The court or arbitration tribunal will not examine the dispute until the conditions of the mediation agreement are fulfilled, except where the claimant confirms it will suffer irreparable harm without such examination.

What happens to the information?

The mediation process and the information are confidential, participants may not use it in later proceedings, and the obligation survives the completion of mediation.

How does it affect limitation?

From the start of private mediation the running of the limitation period is suspended, for no more than 2 years; the suspended time is not counted within the period.

5 min·1 Sep 2026

A mediation clause is the contract term by which the parties agree in advance that a dispute between them, existing or future, will be resolved through a mediator rather than immediately litigated. Georgian law on mediation attaches specific legal effects to this agreement: it is a precondition for starting mediation, it deflects the dispute away from court and arbitration for the agreed period, and it protects information disclosed during the process. This page explains Articles 7, 10 and 12 of the Law on Mediation.

Start of Mediation and the Confirmation Document

Under Article 7, mediation may be started on the basis of an agreement on mediation, or on another basis provided by law, namely the transfer of the case to a mediator by a court or another authorised body at the parties' request. Mediation begins when the parties, or one of them, apply to the mediator, or as a result of such transfer. Mediation is deemed started from the moment of the application to the mediator or the transfer of the case, and at a party's request the mediator issues a document confirming the start of mediation.

Updated: 10 Oct 2026