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The video tutorial discusses the importance of drafting an arbitration agreement in contracts. It explains that arbitration is a quicker alternative to resolving disputes compared to civil court. In a scenario where one party breaches a contract, going to court can be time-consuming. Therefore, parties are legally allowed to include an arbitration clause in their agreements. This clause outlines the process of resolving disputes through arbitration instead of litigation. By including an arbitration agreement, parties can save time and costs associated with traditional court proceedings.
