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An arbitration agreement is a contract where parties agree to resolve disputes through arbitration rather than in court, thus relinquishing their right to judicial resolution. For the agreement to be valid, it must meet several conditions: it must be in writing, apply to current or future disputes, arise from a legal relationship, involve parties with the legal capacity to contract, concern a subject matter suitable for arbitration, and specify the governing laws or rules. This process allows for a binding resolution by an independent tribunal, providing a private alternative to the national legal system.