What is a binding agreement? In fact, a binding agreement is a contract between two parties that can be legally enforced.3 min read mediation is often used to help an outgoing or divorced couple establish their differences in subsistence, child custody, custody, access and division of property. Business lawyers often use mediation as a prerequisite for and before cases where there is a formal arbitration agreement. The idea is that even if the entire commercial dispute cannot be resolved through voluntary mediation, the procedure (mediation) itself is very well suited to focus the parties and their lawyers on the substance of the dispute. .