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An arbitration agreement visualized when parties agree to arbitrate their disputes, they give up the right to have those disputes decided by a national court. Instead, they agree to settle their disagreements privately outside of the legal system. An arbitration agreement refers to parties in a legal relationship, referring a current or future dispute to an independent tribunal. This tribunal resolves the problem in a binding way. To be valid and effective, the agreement must be in writing, related to current and future disputes, arise from a legal relationship, have parties with legal capacity and consent, be capable of arbitration settlement, and comply with additional conditions.
