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An arbitration agreement visualizes when parties agree to settle disputes privately outside of the legal system, giving up the right to have disputes decided by a national court. It is a binding agreement between disputing parties to refer current or future disputes to an independent tribunal. For it to be valid and effective, the agreement must be in writing, related to current or future disputes, arise from a legal relationship, involve parties with legal capacity and consent, have a subject matter capable of being settled by arbitration.
