Negotiation: In this method parties settle disputes by discussing themselves and reach a solution.

Example: By way of Negotiation India and Sri Lanka had settled their dispute in 1974, India and Pakistan settled their disputes in Simla conference, Farakka Barrage gunfire issue was also settled between India and Bangladesh .

Mediation: Third party is involved here as a mediator and he would be an impartial person.In the way of mediation third party is involved in discussion and suggests his views for resolving disputes.But it is not binding upon the parties.