Originally from Arbitration Law of Turkey: Practice and Procedure

In general, the arbitration agreement provides the basis for arbitration. In order for arbitration proceedings to be brought, the parties must have concluded a valid arbitration agreement amongst themselves. Though TIAC does not specifically provide a definition of the arbitration agreement, the generally accepted definition is an agreement whereby two or more parties agree that a dispute, which has arisen or may arise between them in connection with a particular legal relationship, will be finally settled by one or more arbitrators. The essential element of the arbitration agreement is the parties’ intention to arbitrate. Thus, the parties’ intention to refer the dispute to arbitration needs to be as clear as possible1.

A simple one-sentence arbitration agreement is fine, if that is what the parties really want. Simplicity is important and often parties to contracts do not want complicated arbitration clauses. Especially when the parties refer to institutional arbitration, a simple arbitration clause is better since the rules referred regulate the proceeding in details. The location of the arbitration is always advised to be stated in the arbitration clause.

If the parties prefer a well-drafted arbitration clause, the parties agree to the issues such as selection and qualification of the arbitrators, language of Arbitration, governing law, and expenses.