Differences between mediation agreement and settlement agreement

A mediation agreement fundamentally differs from a settlement agreement. The first arises from mediation and focuses on voluntary solutions, while the second is an amicable settlement pursuant to Article 7:900 of the Dutch Civil Code with stronger formal requirements, often notarised. In rental disputes, a settlement agreement provides an executory title, enabling direct enforcement without a new court case. Mediation agreements are more flexible but less directly enforceable. Choose mediation to preserve the relationship, such as in temporary rental issues; a settlement agreement for definitive settlement. Legally: mediation falls under the Quality Requirements Act for Self-Employment, settlement under Book 7 of the Dutch Civil Code. Practical example: in eviction disputes, a settlement agreement prevents lengthy procedures. Note: a mediation agreement can be converted into a settlement agreement for additional security. This distinction is crucial for tenants and landlords to minimise risks.