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An arbitration agreement is a contract between disputing parties that allows them to resolve their disputes outside the national court system, opting for a private tribunal instead. For the agreement to be valid and effective, it must meet six conditions: it must be in writing; relate to current or future disputes; arise from a legal relationship between the parties (contractual or otherwise); involve parties with the legal capacity to consent; pertain to matters that can be settled by arbitration; and include essential elements of arbitration like the process and procedures involved. Arbitration leads to binding resolutions for all involved parties.
