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An arbitration agreement is a contract between parties to resolve their disputes privately through an independent tribunal instead of through national courts. For an arbitration agreement to be valid, it must meet several conditions: it must be in writing, pertain to current or future disputes, arise from a legal relationship (contractual or otherwise), involve parties with legal capacity and consent, and the subject matter must be arbitrable. By entering into such an agreement, the parties forfeit their right to have disputes adjudicated in court, opting instead for a binding resolution outside the conventional legal system.
