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An arbitration agreement enables parties to resolve disputes privately without resorting to national courts. It is a mutual arrangement to submit current or future disputes to an independent tribunal, whose decision is binding on all involved. For an arbitration agreement to be valid, it must meet several conditions: it must be written, pertain to disputes arising from a legal relationship (contractual or otherwise), ensure that the parties have the legal capacity and consent to enter into contracts, involve matters that can be settled through arbitration, and comply with specific regulations governing arbitration.