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The video explores the process of drafting an arbitration agreement in a contract. Arbitration is a way to resolve disputes outside of court. In a scenario where party A and party B enter into a contract, if a dispute arises, party A would traditionally go to court to claim damages. However, this process can be time-consuming. Arbitration offers a quicker and more efficient alternative for resolving disputes. The agreement outlines the rules and procedures that will govern the arbitration process. This provides a more cost-effective and efficient way to resolve disputes compared to traditional court proceedings.
