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An arbitration agreement is a contract wherein parties agree to resolve disputes outside of the national court system, opting for a binding decision from an independent tribunal. Key conditions for a valid arbitration agreement include: 1) it must be in writing; 2) it should pertain to current or future disputes; 3) disputes must arise from a legal relationship, whether contractual or not; 4) parties must possess legal capacity and consent; 5) the subject matter must be arbitrable. By agreeing to arbitration, parties relinquish their right to seek resolution through traditional court avenues.