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When parties agree to resolve disputes through arbitration, they forfeit their right to litigation in a national court, opting instead for private resolution. An arbitration agreement binds the parties to submit existing or future disputes to an independent tribunal. For the agreement to be valid, it must meet several conditions: it must be in writing, relate to current or potential disputes, arise from a legal relationship (contractual or otherwise), involve parties with the legal capacity to contract, concern issues suitable for arbitration, and include specific arbitration clauses. These elements ensure enforceability and proper functioning within the arbitration framework.
