Which term describes a neutral third party helping parties reach a voluntary agreement outside formal proceedings?

• A. Litigation.
• B. Trial.
• C. Arbitration.
• D. Mediation.

Answer: (D)

Mediation is a process where a neutral third party helps the disputing sides communicate and work toward a voluntary agreement, all outside formal court proceedings. The mediator facilitates discussion, clarifies interests, and helps generate options, but does not decide the outcome. Any settlement is reached only if both sides agree, keeping control with the parties themselves. This contrasts with litigation or trial, which involve formal court procedures and a judge's binding decision, and with arbitration, where a neutral arbitrator issues a binding decision after considering the evidence. Because the scenario emphasizes reaching a voluntary agreement without formal proceedings, mediation best fits this description.