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An arbitration agreement occurs when parties opt to resolve their disputes outside of a national court system, opting for private settlement through an independent tribunal. This binding agreement must meet several conditions: it must be in writing, pertain to present or future disputes arising from a legal relationship (contractual or otherwise), involve parties with the legal capacity and consent to contract, address a subject matter eligible for arbitration, and comply with any additional procedural requirements. By entering into an arbitration agreement, parties relinquish their right to court adjudication in favor of arbitration.