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An arbitration agreement is a contract in which parties agree to resolve disputes outside of the national court system, opting for a private tribunal instead. For the agreement to be valid and effective, several conditions must be met: it must be in writing, pertain to current or future disputes, arise from a legal relationship between the parties, involve parties with legal capacity to contract, the subject matter must be arbitrable, and the agreement needs to specify the arbitration process. Through this agreement, parties relinquish their right to court intervention, committing to a binding resolution by an independent authority.
