International Commercial Dispute Resolution

The parties are able to analyze their commercial risks by agreeing on the means of dispute resolutions at the stage of contract negotiations.

The parties may apply to the court regarding the dispute, or they can use alternative dispute resolution methods. Mediation or arbitration alternative resolution methods are widely used in international commercial disputes.

In the mediation method, the mediator brings the parties together. In case of agreement of the parties as a result of mediation a settlement protocol is prepared and delivered to the parties. A settlement protocol that is not accepted and signed by the parties is not binding.

Arbitration means that the disputes that have arisen or may arise between the parties are handled by the arbitrators determined by the parties instead of the general courts. Today, arbitration is preferred instead of state jurisdiction, especially in the resolution of disputes in international trade. In arbitration proceedings; The important factors are that the arbitrators are more specialized than the state proceedings, their impartiality, and that the arbitral proceedings are confidential, fast and economical. In arbitration proceedings, the parties may determine the applicable law and the procedural rules to be applied in the arbitration. Turkey is also a party to the New York Convention adopted on 7 June 1959 on the execution of decisions rendered as a result of arbitration proceedings in other countries.

Instead of alternative dispute resolution methods, the parties may prefer state judgment as it is more reliable in terms of predictability and eliminating the unknown between them. They can determine the competent court in the dispute by contract and choose the applicable law.

There is a compulsory mediation system for commercial disputes in Turkish courts. In commercial matters in Turkey, it is a prerequisite to apply to a mediator before filing a lawsuit about claims for receivables and compensation, where the subject of the lawsuit is the payment of a certain amount of money.