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An arbitration agreement is a pact between disputing parties to resolve their disputes privately through an independent tribunal instead of a national court. For this agreement to be valid and effective, it must meet several conditions: it must be in writing; it must relate to current or future disputes arising from a legal relationship, whether contractual or not; the parties involved must have the capacity and consent to contract; the subject matter must be arbitrable; and the agreement must specify the arbitration process. By agreeing to arbitrate, parties forfeit their rights to a court trial over the disputes.