This paper presents and analyses the factors that shape and affect the process of mediation and essentially determine its final outcomes. Mediation works as a recognized social institution and a legal measure. Therefore, in order to analyze the effectiveness of mediation, both of these areas need to be addressed. The principal goal of mediation is to reach an agreement on the settlement of a dispute. To arrive at this point of the process, a series of factors should be taken into account, informed decisions need to be taken, and a number of obligations have to be fulfilled.