An intermediary is a third party that offers intermediation services between two parties, which involves conveying messages between principals in a dispute, preventingdirect contact and potential escalation of the issue. In law, intermediaries can facilitate communication between a vulnerable witness, defendant and court personnel to acquire valuable evidence. Whilst in barter, the intermediary is a person or group who stores valuables in trade until they are needed, parties to the barter or others have space available to take delivery of them and store them, or until other conditions are met.
Diplomacy
In diplomacy and international relations, an intermediary may convey messages between principals in a dispute, allowing the avoidance of direct principal-to-principal contact. Where the two parties are geographically distant, the process may be termed shuttle diplomacy.
Law
In law, intermediaries can facilitate communication between a vulnerable witness, defendant and court personnel to acquire valuable evidence and to ensure all parties have a fair trial.
Trading
The intermediary acts as a conduit for goods or services offered by a supplier to a consumer. Typically the intermediary offers some added value to the transaction that may not be possible by direct trading. Common usage includes the insurance, and financial services industry where e.g. mortgage brokers, insurance broker, and financial advisers offer intermediation services in the supply of financial products such as mortgage loans, insurance, and investment products. In barter, the intermediary will store valuables in trade until they are needed, parties to the barter or others can take delivery of them and store them, or until other conditions are met. In a larger sense, an intermediary can be a person or organization who or which facilitates a contract between two other parties. The Internet is creating opportunities to automate intermediaries in many industries.
Types
Intermediaries can be classified as merchant intermediaries or as accountant intermediaries. Bailey and Bakos analyzed a number of case studies and identified four roles of electronic intermediaries including information aggregating, providing trust, facilitating and matching.
