Mediation Agreement

SHORT ANSWER TO THE MAIN QUESTION

The Czech Mediation Act uses the specific concept of an Agreement to Conduct Mediation. It is a written agreement between the parties to the dispute and at least one registered mediator, and mediation under the Act begins when this agreement is signed.

The agreement must identify at least the parties, the mediator, the dispute to be mediated, the mediator’s fee and the intended duration of the mediation.

The Agreement to Conduct Mediation does not itself resolve the dispute. If the parties reach a solution during mediation, they may subsequently enter into a mediated settlement agreement, which regulates their mutual rights and obligations.

The Agreement to Conduct Mediation starts the process. The mediated settlement agreement may record its outcome.

 YOU MAY BE THINKING…

“The court ordered me to meet a mediator. Do I have to settle?”

“Do I have to enter mediation at all?”

“Can the mediator tell us who is legally right?”

“Can the mediator propose a solution?”

“Is everything I say in mediation confidential?”

“Can the other party later use what I said in court?”

“If we sign a mediated settlement, can I enforce it immediately?”

“Can my mediator be a lawyer?”

“And can the same lawyer represent me in court if mediation fails?”

“What happens to limitation periods while we are trying to settle the dispute?”

These are exactly the questions that determine whether a person really understands the process they are entering.

CLIENTS OFTEN ASK…

Is a Mediation Agreement the same as a mediated settlement agreement?

No.

The Agreement to Conduct Mediation is entered into at the beginning between the parties to the dispute and the mediator. Its purpose is to start the mediation and define its basic framework.

A mediated settlement agreement may be entered into later, as the result of mediation, and is concluded between the parties themselves.

The first agreement therefore answers:

“How are we going to mediate?”

The second answers:

“What have we ultimately agreed?”

Can a court order mediation?

Under Czech civil procedure, a court may under certain conditions order the parties to attend an initial meeting with a registered mediator, for a maximum of three hours.

That is not the same as mediation itself.

If the parties only attend the court-ordered initial meeting and do not enter into an Agreement to Conduct Mediation, mediation under the Czech Mediation Act has not begun.

A court may in certain circumstances order the parties to meet a mediator. It cannot order them to reach a settlement through mediation.

Can the mediator decide who is right?

No.

A mediator is neither a judge nor an arbitrator.

The mediator’s role is to act independently and impartially, support communication between the parties and help them search for a solution they are willing to accept.

That is fundamentally different from litigation or arbitration.

A court typically asks:

“Who is legally entitled to what?”

Mediation may also ask:

“What solution are both parties willing to accept so that the dispute can end?”

Can the mediator also be a lawyer?

Yes. A lawyer may also be a registered mediator if they satisfy the statutory conditions.

But the roles must be distinguished.

Under Czech law, a mediator may not provide legal services in relation to a dispute in which they conduct mediation, have conducted mediation or have already taken steps in preparation for mediation.

A lawyer acting as mediator is not the lawyer of either party.

Is a mediated settlement automatically enforceable?

No.

A mediated settlement may be legally binding between the parties, but the fact that it was reached through mediation and signed by the mediator does not automatically make it an enforcement title.

If direct enforceability is important, it may be appropriate, depending on the circumstances, to have the settlement approved as a court settlement or use another legal form capable of direct enforcement.

A binding agreement and a directly enforceable agreement are not always the same thing.

Can one party terminate the mediation?

Yes.

Voluntary participation does not only concern the initial decision to enter mediation.

Czech law also recognises that one party may notify the others that it no longer wishes to continue.

Mediation is not a process in which someone must remain until a settlement is reached.

WHAT THE LAW SAYS VS. WHAT HAPPENS IN PRACTICE

The law distinguishes three different stages

This is the most important map for understanding the entire topic.

1. Initial meeting with the mediator

The court may order it.

Its purpose is mainly to familiarise the parties with mediation and allow them to decide whether they actually want to use it.

The initial meeting itself does not start mediation.

2. Agreement to Conduct Mediation

Only when this agreement is signed does mediation begin under Czech law.

But by signing it, the parties are not promising:

“We will definitely settle.”

They agree only to attempt to resolve the dispute through mediation.

3. Mediated settlement agreement

If the parties find a solution, they may record it in writing.

The agreement is concluded by the parties to the dispute, while the mediator confirms by signature that it was reached within the mediation process.

The mediator manages the process but does not create the result instead of the parties

This is particularly important in practice.

Czech law expressly provides that the parties themselves are responsible for the content of the mediated settlement agreement.

The mediator is supposed to create the conditions for communication and for finding a solution.

The mediator is not the legal representative of either party.

So the statement:

“But the mediator approved the agreement.”

does not necessarily mean:

“Someone independently checked that the agreement is legally advantageous and safe for me.”

Those are two different things.

Legally possible is not automatically the same as commercially sensible

Mediation may end, for example, with a settlement such as:

“The supplier waives part of the invoice and the customer immediately pays the remainder.”

That may not be the outcome a court would have reached.

And that is not a defect of mediation.

The point may be that the parties take into account not only their strict legal position, but also:

time,

cost,

future cooperation,

reputational risk,

commercial relationships,

evidentiary uncertainty.

Mediation does not necessarily seek the same outcome that a court would impose. It seeks an outcome that the parties themselves are willing to accept.

Mediation can take place during court proceedings

Pending court proceedings and mediation are not mutually exclusive.

The parties may litigate and at the same time attempt to reach a negotiated solution.

If they succeed, the settlement may, depending on the circumstances, be reflected in a court settlement or another procedural step.

Mediation therefore does not necessarily mean:

“We are giving up litigation.”

It often means:

“Before we let the court decide, we will see whether there is a solution that remains in our own hands.”

BIGGEST RISKS AND COMMON MISTAKES

❌ Mistake: “The court ordered us to mediate.”

Consequence

A party attends the initial meeting believing they are being forced to compromise.

That can block the process before it even begins.

Better understanding

A court-ordered initial meeting and mediation itself are different things.

After the initial meeting, the parties may still decide whether to enter into an Agreement to Conduct Mediation.

❌ Mistake: “The mediator will tell us who would win in court.”

Consequence

The parties arrive expecting a legal opinion or authoritative decision.

But the mediator does not adjudicate the dispute.

Better approach

If a party needs to understand its legal position, it should obtain separate advice from its own legal counsel.

The mediator and the party’s lawyer perform different roles.

❌ Mistake: the parties reach agreement quickly, but nobody checks the legal structure

The parties agree:

“I will pay you CZK 500,000 and that settles everything.”

But:

What exactly is extinguished?

Only one receivable?

Interest as well?

Damages?

Future claims?

Related complaints?

Pending litigation?

Consequence

Psychologically, the dispute may feel resolved.

Legally, important issues may remain open.

Better approach

For more complex settlements, separate the process of reaching commercial agreement from the legal review of how that agreement should be structured.

❌ Mistake: “We signed a mediated settlement, so we can go straight to enforcement.”

Consequence

The debtor does not perform.

The other party discovers that it has a binding contractual claim, but not necessarily a directly enforceable enforcement title.

Better approach

If direct enforceability matters, address it when the final settlement is being structured.

❌ Mistake: nobody considers limitation or other running deadlines

The parties negotiate for several months.

Everyone assumes:

“If we are mediating, deadlines no longer matter.”

Consequence

Out-of-court negotiations can have important legal effects, but it is unsafe to assume that every informal discussion or attempt to compromise automatically suspends every relevant deadline.

Better approach

For significant claims, check specifically:

• limitation periods,
• forfeiture periods,
• procedural deadlines,
• any special deadlines for exercising particular rights.

❌ Mistake: one party expects the mediator to advise them against the other party

Consequence

The roles become incompatible.

The mediator must remain independent and impartial.

The mediator cannot simultaneously protect one party’s legal position strategically against the other.

Better approach

A party may have its own lawyer to help assess proposed solutions.

The roles of legal counsel and mediator can complement each other, but they should not be confused.

HOW TO APPROACH IT – REALITY, NOT THEORY

1. First decide what you expect from mediation

Do you want to:

end a commercial dispute?

agree on a payment arrangement?

preserve the business relationship?

resolve only part of the dispute?

find a solution faster than through litigation?

Mediation works differently where the parties are arguing over one invoice than where they still need to cooperate for another ten years.

2. Separate your legal position from your negotiating interest

For example, your legal position may be:

“I am entitled to CZK 1 million.”

Your actual interest may be:

“I need at least CZK 700,000 within two months and I do not want to litigate for two years.”

The other party may say:

“I will not pay one million.”

But its real interest may be:

“I need instalments because the company cannot afford an immediate lump-sum payment.”

This is precisely where mediation may create room for a solution that a judgment cannot.

3. Check who is conducting the mediation

Statutory mediation is conducted by a registered mediator.

The Czech Ministry of Justice maintains a public register of registered mediators.

Specialisation may also matter in certain disputes, for example in family mediation.

Beyond expertise, both parties need to have sufficient confidence in the mediator personally.

4. Before signing, know what the mediation actually covers

The Agreement to Conduct Mediation must define the dispute.

That is not merely a formal requirement.

In a broader commercial relationship, the parties may simultaneously have:

an unpaid invoice,

a defect claim,

a damages claim,

a dispute over termination,

intellectual property issues.

You need to know whether the mediation concerns one issue or the entire relationship.

5. Deal with fees and costs

Actual mediation is conducted for a contractual fee agreed with the mediator.

Unless the parties agree otherwise, Czech law assumes that the agreed fee and agreed cash expenses of the mediator are borne equally by the parties.

That does not mean the mediator must charge a universal rate.

The cost framework should be known before the parties enter mediation.

6. Do not lose control of the legal result while searching for compromise

One thing is to say:

“We agreed on the amount.”

Another is to deal properly with:

• due dates,
• instalments,
• security,
• consequences of non-performance,
• waiver of further claims,
• costs of pending litigation,
• termination of related contracts,
• confidentiality,
• enforceability.

The more complex the dispute, the more important this second layer becomes.

7. Decide how the final result should work legally

Sometimes an ordinary contractual agreement is sufficient.

In other situations, the parties may need:

a court settlement,

a directly enforceable instrument,

a settlement agreement,

an amendment or termination of an existing contract,

several related documents.

Successful mediation does not only mean “we reached agreement”. In a more complex dispute, the second question is whether the agreement is legally capable of doing exactly what the parties intend.

PRACTICAL EXAMPLES

The following examples are illustrative.

👉 The court orders an initial meeting

Two companies are in litigation.

The court orders them to attend an initial meeting with a registered mediator.

One company arrives saying:

“I am not signing any compromise.”

It does not have to.

Attending the initial meeting does not mean that the parties must enter mediation or reach a settlement.

But if both parties conclude that further discussion may be useful, they can subsequently sign an Agreement to Conduct Mediation.

Only then does mediation begin under Czech law.

👉 The commercial dispute is not only about an invoice

A supplier claims CZK 800,000.

The customer argues that the work was defective.

So alongside the unpaid invoice, there may also be:

a price reduction claim,

a possible damages claim,

a dispute over remedying defects.

If the Agreement to Conduct Mediation describes the dispute only as:

“unpaid invoice no. 123”,

it may be too narrow for what the parties actually need to resolve.

👉 The parties agree on instalments

The debtor agrees to pay CZK 600,000 in twelve instalments.

The creditor agrees.

But the legal work may not be finished.

What happens if the third instalment is missed?

Does the entire remaining balance become immediately due?

Is there security?

What happens to the original disputed claim?

Should the agreement be directly enforceable?

The commercial settlement is one thing. The legal mechanism for making it work is another.

👉 Mediation ends without a settlement

The parties attend several sessions.

Eventually, they realise that their minimum acceptable outcomes remain too far apart.

That does not necessarily mean the mediation “failed”.

They may still have:

clarified the real points of dispute,

narrowed the conflict,

identified what is genuinely non-negotiable,

gained a better understanding of what to do next.

Mediation is not supposed to guarantee settlement.

It is supposed to create the possibility for the parties to find one themselves.

WHY YOU SHOULD BE CAREFUL WITH “I’LL DO IT MYSELF”

The Czech Mediation Act defines the minimum contents of an Agreement to Conduct Mediation relatively clearly.

Generative AI can therefore easily produce a document containing:

the parties,

the mediator,

the dispute,

the fee,

the duration.

The harder part often comes later.

The parties may say:

“We agreed that both sides will compromise a little. Please draft the mediated settlement.”

But a legally sound result requires answers to questions such as:

What exactly was disputed?

Which claims are supposed to end?

Which remain?

Is the settlement legally a settlement agreement?

Does it involve acknowledgment of debt?

Should the obligation be secured?

How should instalments work?

What happens to pending litigation?

Do the parties need direct enforceability?

Are third parties involved whose rights cannot be changed by the settlement?

AI can record a compromise in writing very effectively. But without sufficient legal context, it cannot safely determine which legal effects the document must create in order to bring the dispute to a genuine end.

LAWYER’S RECOMMENDATION + CHECKLIST

With mediation, I would separate two questions:

Is mediation an appropriate way to resolve this particular dispute?

and then:

Is the legal result reached through mediation structured correctly?

Before entering mediation or signing the final settlement, I would check:

• who the registered mediator is,
• whether there are any circumstances that may affect the mediator’s impartiality,
• what dispute the mediation actually covers,
• whether all material claims are included,
• what the mediator’s fee is and who pays it,
• how long the mediation is intended to last,
• which deadlines continue to run,
• whether court proceedings are already pending,
• what my legal alternatives outside mediation are,
• which interests are genuinely important to me,
• what minimum result is acceptable,
• whether the proposed settlement resolves the entire dispute,
• whether it defines both parties’ obligations precisely,
• whether it deals with deadlines and payment dates,
• whether it addresses consequences of non-performance,
• whether any obligation should be secured,
• whether direct enforceability is required,
• whether a court settlement or another follow-up instrument is needed,
• what happens to pending court proceedings,
• whether the agreement affects rights of third parties.

FAQ

What is an Agreement to Conduct Mediation?

It is a written agreement between the parties to the dispute and at least one registered mediator.

Mediation under the Czech Mediation Act begins when this agreement is concluded.

What must an Agreement to Conduct Mediation contain?

Czech law requires at least identification of the parties, details of the mediator, definition of the dispute, the mediator’s fee or the method of determining it, and the duration of mediation or an agreement that it will continue for an indefinite period.

Do I have to participate in mediation if the court ordered it?

The court may under statutory conditions order an initial meeting with a registered mediator.

That meeting does not itself commence mediation.

Mediation begins only when the parties enter into an Agreement to Conduct Mediation.

How much does a court-ordered initial meeting with a mediator cost?

From 1 January 2026, the regulated fee for a court-ordered initial meeting with a registered mediator is CZK 1,000 excluding VAT for each commenced hour.

Unless the parties agree otherwise, they bear the fee equally.

Any subsequent mediation is conducted for the mediator’s contractually agreed fee.

Is mediation confidential?

A registered mediator has a statutory duty of confidentiality regarding facts learned in connection with the preparation and conduct of mediation.

The duty applies even where the Agreement to Conduct Mediation is ultimately not signed.

That does not mean that the mediator’s confidentiality obligation should automatically be confused with obligations between the parties themselves. If the parties want a specific confidentiality regime binding them directly, that should be considered separately.

Is a mediated settlement legally binding?

A mediated settlement may create binding rights and obligations between the parties.

Its precise legal effect depends on its content and on the underlying legal relationship.

The mediator’s signature alone does not automatically make it an enforcement title.

Can the mediator draft the settlement for us?

The mediator manages the mediation process, while Czech law expressly states that the parties themselves are responsible for the content of the mediated settlement.

For legally complex settlements, it may be appropriate for each party to have the legal consequences reviewed independently.

Does mediation suspend limitation?

An Agreement to Conduct Mediation may constitute an agreement on out-of-court negotiations under the Czech Civil Code and may therefore affect the running of the limitation period for the rights being negotiated.

For a particular claim, however, it is unsafe to rely only on a general assumption that “deadlines stop during mediation”. The specific right and specific deadline should always be checked.