Arbitration Agreement is a written formal way of resolving a dispute in which the opposing parties present their case to a single independent third person, the Arbitrator.
It is generally needed when you want a quick and hassle free decision for your disputes. This avoids extra costs of litigation and complexities of court.
This Agreement can be enforced legally by printing it on a non-judicial stamp paper duly signed by both the parties and the concerned witnesses.
You may use it if you want to resolve your case quickly and efficiently. This is usually economical and less complicated than getting your case resolved in court.