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An arbitration agreement is a contract where parties agree to resolve their disputes outside of the national court system, opting for a private tribunal instead. To be valid, the agreement must meet several criteria: it must be in writing, relate to existing or future disputes, arise from a legal relationship (contractual or otherwise), involve parties with the legal capacity to contract, pertain to issues that can be arbitrated, and outline the arbitration process clearly. By entering into this agreement, the parties relinquish their right to have their disputes adjudicated by a court, committing to a binding resolution from an independent tribunal.
