As the Attorney Arb. Billur Güler Aslım Law Firm, we work to provide solutions to the legal needs of businesses operating in Antalya. In this article, we will discuss in detail the validity of the arbitration clause, which is a frequently encountered issue in limited company contracts in Antalya. Choosing arbitration in resolving disputes that may arise in the establishment and operations of a limited company is important in terms of saving time and costs. However, the validity and applicability of the arbitration clause depends on certain conditions.
What is Arbitration and Why is it Preferred?
Arbitration is when parties agree among themselves to authorize a special person or a group of people (arbitrators or arbitration boards) to resolve their disputes instead of a judge. Arbitration offers a faster, more confidential and more flexible solution compared to formal court processes. Parties can determine the areas of expertise and resolution methods of the arbitrators. This provides a more fair and effective solution, especially in technical or expert matters. Many limited companies operating in Antalya prefer arbitration to resolve potential disputes quickly and efficiently.
Inclusion of an Arbitration Clause in a Limited Company Agreement
In a limited company contract, the arbitration clause is determined by the agreement of the parties and becomes an integral part of the contract. This clause determines which arbitrator or arbitration board will resolve the disputes, according to which rules and where. In order for the arbitration clause to be valid, the contract must be signed with free will and the arbitration clause must be expressed clearly, distinctly and distinctly. An unclear or ambiguous arbitration clause may be deemed invalid.
Arbitration Clause Must Be in Written Form
The inclusion of the arbitration clause in writing in the contract is of great importance in terms of its legal validity. Since verbal agreements are difficult to prove and increase the burden of proof in the event of a dispute, it is preferable to document the arbitration clause in writing. This both secures the rights of the parties and prevents possible disputes.
Determination of Arbitration Rules
The contract should clearly state which arbitration rules will be applied. For example, the rules of organizations such as the Istanbul Chamber of Commerce Arbitration Board or the Turkish Arbitration Institution may be preferred. The determination of the rules regulates issues such as how the arbitration process will be conducted, the selection of arbitrators, and the rendering of the award. This ensures that the process is transparent and fair.
Validity of the Arbitration Clause in Antalya and Problems Encountered in Practice
The validity of the arbitration clause in limited company contracts in Antalya is subject to the general principles of Turkish Law and the provisions of the Civil Procedure Code No. 6100 (HMK). However, some problems may occur in practice. For example, there may be a disagreement between the parties regarding the validity of the arbitration clause, or there may be doubts about the impartiality of the arbitrators. In such cases, the intervention of the courts may be necessary.
Provisions of the CCP Regarding Arbitration
The HMK contains detailed provisions regulating arbitration procedures and validity. These provisions cover issues such as the validity conditions of the arbitration agreement, the selection of an arbitrator, the conduct of the arbitration process and the execution of the arbitration award. Law firms in Antalya conduct arbitration processes in accordance with the relevant provisions of the HMK and provide the most accurate legal support to their clients.
Right to Object and Court Intervention
The validity of an arbitration clause or an arbitration award may be challenged. However, certain conditions must be met in order to exercise the right to challenge. The court may only intervene in an arbitration award in certain cases, such as when the arbitration clause is invalid or the arbitration award is unlawful.
Creating the Right Arbitration Clause for Your Limited Company in Antalya
As a limited company operating in Antalya, it is very important to include the right arbitration clause in your contract in order to resolve potential disputes effectively. This will save both time and money and protect the continuity of your business. As Atty. Arb. Billur Güler Aslım Law Firm, we would be happy to support you in preparing a suitable and effective arbitration clause for your limited company contract. By receiving professional legal consultancy services, you can minimize potential risks and secure the future of your business. By contacting us, you can determine the most suitable arbitration clause for your limited company in Antalya and plan for potential disputes in advance.