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NEWS LETTER 2 0 1 0

30

of Article 2 of Law on International Private Law and Procedural Law, a

judge is obliged ex officio to investigate the applicability of a foreign law

in a lawsuit; in accordance with the respective provision of Article 24/1,

private relationship of the parties, arising from a contract is subject to

the law decided expressly as applicable therein; in compliance with the

letter of warranty, deemed as the provision of the contract by the parties

thereto, Swiss Law is applicable to the dispute; under such a circumstance,

the court should demand the assistance of the parties, with regard to the

submission of the Swiss Laws, and the respective regulations applicable

to this lawsuit, as well as summon the respective provisions of the said

laws by mediation of the Ministry of Justice, and have the compliance of

the expertise report with the provision of the submitted foreign laws in

question examined”.

Pursuant to the clear provision of Law No. 5718, although the lawsuit

in question is tried before the Turkish Courts, the applicable law will be

the law of the foreign country, having been expressly agreed upon by the

parties in the respective contract. The settled practice of the 11

th

Civil

Chamber of the Court of Appeal is in line with the Law.