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An arbitration agreement is formed when parties decide to resolve disputes privately, relinquishing their right to pursue matters in a national court. This agreement involves referring current or future disputes to an independent tribunal, which renders a binding resolution. For an arbitration agreement to be valid, it must meet several conditions: it should be in writing, pertain to existing or future disputes, arise from a legal relationship between the parties, ensure that parties have the legal capacity and consent required to contract, and involve subject matters suitable for arbitration.
