Disputes between parties in different countries may be resolved before state courts or through arbitration. This heading covers arbitration, the effect of foreign decisions in Türkiye and the law applicable to international contracts.
International commercial arbitration
Arbitration is the resolution of a dispute by arbitrators chosen by the parties instead of a state court. The International Arbitration Law (Law No. 4686) applies to disputes seated in Türkiye that involve a foreign element. Arbitration may be conducted under institutional rules (for example ISTAC or ICC) or under a procedure determined by the parties. An arbitral award may be challenged by an action for annulment only on the limited grounds listed in the Law.
- Arbitration agreement and arbitration clause
- Institutional and ad hoc arbitration
- Appointment of arbitrators
- Annulment of arbitral awards
- Interim relief in arbitration
Recognition and enforcement
Recognition is the acceptance in Türkiye of the res judicata effect of a foreign decision; enforcement allows the decision to be executed in Türkiye. Recognition and enforcement of foreign court judgments are governed by the Code on Private International and Procedural Law (Law No. 5718, MOHUK); enforcement requires, among other things, that the judgment be final, that reciprocity exist and that the judgment not be manifestly contrary to public policy. Foreign arbitral awards are subject to the 1958 New York Convention, to which Türkiye is a party. Certain decisions, such as divorce judgments, may also be recognised before administrative authorities.
- Enforcement of foreign court judgments
- Recognition and res judicata effect
- Foreign arbitral awards and the New York Convention
- The reciprocity requirement
- Recognition of foreign divorce judgments
International contract law
Where the parties to a contract are in different countries, or the contract is to be performed in another country, the questions arise of which country's law applies and where a dispute is to be resolved. Under the Code on Private International and Procedural Law (Law No. 5718, MOHUK), the parties may choose the law applicable to their contract; absent a choice, the law of the country most closely connected with the contract applies. In obligations involving a foreign element, the parties may also agree on the jurisdiction of a foreign court.
- Choice of law
- Jurisdiction agreements
- Language and interpretation of the contract
- International supply and licence agreements
- Force majeure and adaptation
This text is for general information purposes only; it is not legal advice.