When a supply arrangement, service agreement, or construction contract goes wrong, the instinct is to reach for the dispute clause. Before the formal letters begin, it is worth considering what mediation can achieve in ordinary commercial disputes, and how often it achieves it.
Which contract disputes suit mediation?
Nearly all of them: price adjustments, delivery delays, quality rejections, variations, termination, and outstanding invoices. The defining feature of commercial disputes is that the parties usually have a continuing relationship, whether a supply chain to keep, a project to finish, or a customer to retain. Mediation is built to settle the past account and, where the parties wish, put the future relationship on agreed terms in the same document.
- Supply and distribution disagreements over quantity, price, and delivery
- Construction and project disputes over variations and delays
- Service-level failures and their consequences
- Termination and outstanding invoices
Should we mediate before filing suit?
No rule requires it, but the practical case is strong: early mediation costs a fraction of contested litigation, and the parties control the timing. Many negotiated contracts now include escalation clauses requiring senior executives to meet, and sometimes to mediate, before proceedings are issued. Check your contract first; the route may already be agreed.
Think about timing within the dispute as well. Mediation works best while the figures are still live: before stock is written off, before substitute suppliers are locked in, and before each side’s position has hardened into a public document. A well-timed invitation to mediate is rarely read as weakness; it is read as commercial sense.
How is the settlement documented?
The mediated settlement agreement should be drafted with the same care as the underlying contract: precise obligations, dates, payment mechanics, releases, and consequences for default. Where a settlement reached in court-annexed mediation is adopted as a judgment of the court, enforcement follows the ordinary court processes. A settlement reached in private mediation can likewise be registered and recognised under the Civil Procedure (Court-Annexed Mediation) Rules 2022.
The contract lawyers at CS Advocates LLP advise on dispute clauses, mediation strategy, and settlement drafting; see our practice areas for the firm’s commercial and dispute resolution work.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation with a certified mediator at our Westlands, Nairobi office.