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When parties agree to arbitrate their disputes, they forfeit their right to resolve them in national courts, opting instead for private settlement outside the legal system. An arbitration agreement is a contract where disputing parties commit to refer current or future disputes to an independent tribunal, which will make binding decisions. For the arbitration agreement to be valid, it must meet several criteria: it must be in writing, relate to current or future disputes, arise from a legal relationship (contractual or otherwise), involve parties with legal capacity and consent, and address a subject matter that can be settled by arbitration.
