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An arbitration agreement allows parties to resolve disputes privately rather than through national courts, resulting in a binding decision by an independent tribunal. For an arbitration agreement to be valid, several conditions must be met: it must be in writing, pertain to current or future disputes, arise from a legal relationship (contractual or otherwise), involve parties with legal capacity and consent, and the subject matter must be capable of arbitration. This framework ensures that disputes are handled outside the traditional legal system, reflecting the parties' commitment to private resolution.
