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An arbitration agreement is a mutual consent between parties to resolve their disputes outside of national courts through an independent tribunal. This binding agreement entails several essential conditions for validity: it must be written, relate to present or future disputes, arise from a legal relationship (contractual or otherwise), involve parties with legal capacity and consent, and pertain to issues that can be settled via arbitration. By agreeing to arbitration, parties relinquish their right to court litigation and instead choose to resolve conflicts in a private setting.