Jurisdiction Agreement

A jurisdiction agreement determines in advance which court will hear disputes between the parties. In commercial contracts it is usually made with a clause such as “Istanbul courts and enforcement offices have jurisdiction over disputes”.

Validity Requirements

Under the Code of Civil Procedure (Arts. 17-18):

• A jurisdiction agreement may only be made between merchants or public legal entities.
• It must be in writing.
• The legal relationship from which the dispute will arise must be specified or specifiable.
• The chosen court or courts must be stated.
• No jurisdiction agreement may be made where exclusive jurisdiction rules apply, for example in cases concerning rights in rem over real estate.

Exclusive Jurisdiction

Unless the parties agree otherwise, the case may only be filed with the court chosen in the agreement. The parties may expressly provide that the generally competent courts remain competent.

Where a Jurisdiction Agreement Cannot Be Made

• Consumer contracts: Consumers are not merchants, so a jurisdiction clause does not bind them.
• Employment contracts: Employees are not merchants, so a jurisdiction clause in an employment contract is not valid; special jurisdiction rules also apply to employment cases.

Choice of a Foreign Court

In contracts with a foreign element, the parties may also agree that a foreign court has jurisdiction; this requires a written agreement and that Turkish courts do not have exclusive jurisdiction. Enforcing a foreign judgment in Turkey also requires recognition and enforcement.

Difference from Arbitration

A jurisdiction agreement determines which state court hears the dispute. For the dispute to be resolved by arbitrators instead of a state court, an arbitration clause is needed. For monetary commercial cases, the obligation to apply to mediation before filing must also be considered.