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strued in a narrow, strict, and exceptional manner, accepting suprana-
tional, international, and fundamental principles of law, as public pol-
icy. It is also accepted in the practice of international arbitration that a
party may not be disadvantaged, due to a lack of specific authority of
its counterparty under the laws applicable to it, and that such limita-
tions governing authority under local laws shall not be given effect to
in international arbitration.
In assessing the consequences of a lack of specific authority, the
separability principle must also be underlined. Accordingly, even if the
arbitration agreement is in the form of an arbitration clause in another
agreement, the underlying contract, and the arbitration agreement/
clause, are considered to be separate, severable and autonomous.
Therefore, the invalidity of the underlying agreement will not neces-
sarily impact the validity of the arbitration agreement. The same prin-
ciple applies if the arbitration agreement is invalid, then the underlying
agreement may continue to be valid and in force.
The lack of specific authority will result in the invalidity of the
arbitration agreement due to the provisions of Turkish law assessed
above. Nevertheless, if no specific authority is required for the execu-
tion of the underlying agreement, it will continue to bear effect, except
for its arbitration clause.
Conclusion
The CPC and the TCO require the granting of specific authority to
voluntarily appointed representatives, in order for such representative
to execute an arbitration agreement on behalf of their principals.
Specific authority is not required for commercial representatives, who
are accepted as the
alter ego
of a merchant. The bodies of a legal enti-
ty are not regarded as representatives or proxies, as they act as, and on
behalf of, the legal entity itself. Nevertheless, if a representative is vol-
untarily appointed, this requirement shall apply.
If an arbitration agreement is concluded by a representative in the
absence of such specific authority, it shall be deemed null and void, as
accepted in Supreme Court rulings. Any arbitration award rendered
under such agreements may be annulled, or their recognition or
enforcement may be refused. Nevertheless, alleging lack of authority
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