Arbitration is the final resolution of disputes between the parties through the so-called arbitrators rather than the state courts. In other words, imagine that you have a commercial case that will end in six months after the evidence is collected. It's cheaper than the judiciary.
Arbitration agreement is the written agreement of the parties to leave the arbitration or arbitration committee to settle all or some of the disputes that may arise or may arise from the contract or non-contractual legal relationship.