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An arbitration agreement is a contract in which parties agree to resolve disputes outside of the national court system, opting for private arbitration instead. This agreement involves referring a current or future dispute to an independent tribunal, which will make a binding decision. For the arbitration agreement to be valid, it must meet several conditions: it must be in writing, relate to existing or future disputes, arise from a legal relationship between the parties, involve parties with legal capacity to contract, address a subject matter eligible for arbitration, and outline the arbitration process.