Drafting An Arbitration Clause In Light Of Mandatory Turkish Law Requirements

Introduction

Parties wishing to refer any present or future dispute to arbitration need to consider certain important aspects when drafting an arbitration clause or a separate arbitration agreement. The language of such arbitration clause or agreement gained further significance in light of the decision of the Turkish Court of Appeals¹ rejecting the validity of an English language arbitration clause in an English language contract between a Turkish and a foreign company by referring to the provisions of Law No. 805 on the Mandatory Usage of the Turkish Language in Commercial Enterprises published in the Official Gazette numbered 353 and dated 22 April 1926 (the "Law No. 805").

Procedural Background