(1) Where it appears to the mediator that there exist elements of a settlement which may be acceptable to the parties, the mediator may formulate the terms of a possible settlement and submit them to the parties for their considerations and after receiving the observations of the parties, the mediator may reformulate the terms of a possible settlement in the light of the observations.

(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement and if requested by the parties, the mediator may draw up, or assist the parties in drawing up, the settlement agreement.

(3) When the parties sign the settlement agreement, the parties shall be deemed to have agreed that the settlement shall be binding on the parties and persons claiming under them respectively.

(4) The mediator shall authenticate the settlement agreement and furnish a copy of the settlement agreement to each of the parties.