An arbitration agreement is one of the clauses under the main contract between the parties. This clause is used by various companies while signing various contracts with the other party. The main purpose of this clause is that if in case of dispute, the first and foremost step that the aggrieved party would take will be arbitration. Many companies prefer to go for arbitration rather than normal court proceedings because of various reasons such as arbitration saves times and it is not as long as court proceedings, it saves up economic resources, it does not hamper the name of the company, provides confidentiality, sometimes landing up in court cases might affect the goodwill and the market reputation of the company, etc. Therefore arbitration agreement is a dispute resolution clause that acts as an alternative method of resolving the disputes rather than filing suits and waiting till eternity for them to end. 

Arbitration is a budding process of alternate dispute resolution, and not known by many. However, it is a clause that needs to be framed by keeping certain elements in mind, which could affect the process, method, and the outcome of the arbitration. Arbitration is a process that involves the parties in dispute, their legal attorneys, and an arbitrator; therefore the elements of the arbitration clause mainly revolve around these parties. 

The essential elements of the arbitration agreement are as follows: 

1. The agreement should be a written agreement and signed by both the parties
2. The agreement should include the seat of arbitration. The seat of arbitration is an important element as it determines the place where the arbitration takes place and the governing law for the same
3. The procedure for appointing the arbitrator is another main element of the clause. The arbitrator is a neutral party, helps the parties to settle the dispute impartially. The arbitrator can be appointed by the parties together; therefore it is important to include under the agreement that how parties will appoint the arbitrator.
4. It is important to state the language of the arbitration. The language plays an important role, especially in a country like India that consists of people speaking a variety of languages. This also saves on the cost which one may spend on hiring translators. 
5. Governing law is to be determined and clearly mentioned in the agreement. The governing law governs the agreement, while the seat law determines how the arbitration process would proceed. 

Thus, these are the key elements that a party should keep in mind while framing the agreement and including the arbitration clause in the agreement. 

 This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.