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An arbitration agreement is a contract where parties agree to resolve disputes outside of the national court system, opting for a private, binding resolution by an independent tribunal. For such an agreement to be valid, it must meet several conditions: it must be in writing, relate to existing or future disputes, stem from a legal relationship (contractual or otherwise), involve parties with the legal capacity and consent to enter into contracts, and address matters suitable for arbitration. By entering into this agreement, parties relinquish their right to seek resolution through traditional courts.