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An arrangement for reaching agreement between two sides by which both sides submit their case to a committee or a person who generally is vested with the authority of giving a final answer to the dispute. In fire policies this is now commonly referred to as "appraisal". The arbitration may be voluntary between any two persons who make up their own terms of reference and generally decide beforehand, whether or not they will be bound by the ultimate ruling. Where arbitration exists because of an agreement, the terms of reference for arbitration appear in the agreement.