The most common method in solving the disputes occurred during international commercial relations is arbitration. Because arbitration is faster and cheaper.
Besides, the national laws of the parties are not competent since a 3. Party state in particular is determined to sweep the distrust away.
In addition to this; trials are performed in great confidentiality and the settlements are not disclosed to public unless the parties confirm so.
As the last point; since the disputes subject to arbitration are complex issues, parties prefer experts to handle the disputes in subject.
The prevailing party expects the verdict to be executed as soon as possible. The purpose of arbitration, on contrary to other alternative solutions, is to reach an obligatory settlement. The sanction of not executing the settlement by the guilty party is to execute such settlement by the national execution proceedings.
The Agreement of the United Nations Regarding the Recognition and Approval of the Foreign Arbitrament dated 1958 (“the New York Agreement” or “the Agreement”) executed in 144 countries located in different continents determines the arbitraments. Turkey is also a contracting party.
The main legislation in Turkey regarding the execution of arbitrament is the international private and procedural law dated December 12, 2007 and numbered 5718 and the New York Agreement approved at July 2, 1992 and promulgated at September 30, 1992.