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Turkish Law

In accordance with Article 4/2 of International Arbitration Law

(“IAL”) that stipulates the written form requirement in Turkish law,

an arbitration agreement shall be deemed concluded by reference to

a document including an arbitration clause, with the intent to render

such document as a part of the main contract.

” Therefore, incorpora-

tion of an arbitration agreement via reference is explicitly allowed in

Turkish Law.

The Court of Cassation applies this rule. Moreover, the Court of

Cassation decided accordingly prior to the entry into force of the IAL.

The 19

th

Civil Chamber of the Court of Cassation decided in 1997 that

due to the fact that the parties agreed to resolve the disputes arising

from the agreement as per the FOSFA rules that contain arbitration

clauses and, as well, the parties shall be able to apply to arbitral tri-

bunal and enforce the arbitral award

6

. Therefore, it can be deduced that

the Court of Cassation decided in accordance with the New York

Convention by interpreting it broadly

7

.

However, the NewYork Convention does not stipulate whether the

arbitration agreements incorporated by reference fulfill the written

form requirement. However, as per the “

more favorable right

” provi-

sion in Art. VII of the NewYork Convention, the regulation in Turkish

law may be accepted as a more favorable right and, consequently, the

arbitration agreement may be deemed valid

8

.

International Law

The incorporation of the agreement to arbitrate by reference is

accepted in international law as well. Article 7/2 of the UNCITRAL

Model Law explicitly accepts this method. Despite the fact that the

New York Convention does not contain explicit regulations regarding

arbitration agreements incorporated by reference, it is clear that in

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NEWSLETTER 2015

6

Please see the decision of 19

th

Civil Chamber of the Court of Cassation dated 08.05.1997, num-

bered 1998/9619 E. (file no.) and 1997/4669 K. (decision no.)

(www.kazanci.com.tr

).

7

Ercüment Erdem

, Yabancı Hakem Kararlarının Tenfizinde Yazılılık Koşulu, XXVI

Symposium of Commercial Law and Decisions of the Court of Cassation, p. 26.

8

Erdem

, p. 26.