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The video discusses whether to draft an arbitration clause in an agreement or the entire arbitration agreement. It explains the concept of arbitration using a hypothetical scenario where party A wants to enter into a contract with party B. Typically, party A would go to civil court in case of a breach, which could take years to resolve. This delay favors the breaching party, leading to a need for arbitration clauses in agreements. Arbitration offers a faster and more efficient way to resolve disputes, providing a better option for parties in business transactions.
