Commercial Mediation in Turkey: A Guide for Companies and Foreign Investors

Introduction

Commercial mediation in Turkey has become one of the most important dispute resolution mechanisms for domestic companies, multinational enterprises, foreign investors, shareholders, contractors, suppliers, distributors and financial institutions. Businesses operating in Turkey may no longer be able to file certain commercial lawsuits immediately before a Turkish court. Depending on the nature of the dispute and the remedy requested, the claimant may first be required to apply for mandatory commercial mediation.

The Turkish commercial mediation system is designed to resolve business disputes more quickly, confidentially and cost-effectively than traditional litigation. It enables the parties to negotiate practical solutions such as deferred payment plans, debt restructuring, revised delivery schedules, replacement performance, contractual amendments and the continuation or termination of a commercial relationship on mutually acceptable terms.

The principal legal framework is found in Law No. 6325 on Mediation in Civil Disputes and Article 5/A of the Turkish Commercial Code No. 6102. Article 5/A introduced mediation as a condition of action for specified commercial lawsuits. Under the current framework, mandatory commercial mediation includes commercial actions concerning monetary receivables and compensation, as well as certain actions for annulment of an objection, negative declaratory relief and restitution.

Commercial mediation is relevant not only to Turkish companies but also to foreign businesses conducting transactions in Turkey. A foreign company may become involved in mediation because its counterparty is located in Turkey, the contract is governed by Turkish law, the place of performance is in Turkey, Turkish courts have jurisdiction or the debtor’s assets are situated in Turkey.

This article explains the scope of commercial mediation in Turkey, the disputes subject to mandatory mediation, the procedural steps, the position of foreign investors, the enforceability of settlement agreements and the role of a Turkish commercial mediation lawyer.

What Is Commercial Mediation in Turkey?

Commercial mediation is a structured negotiation process in which an independent and impartial mediator helps businesses resolve a commercial dispute without imposing a judgment.

Unlike a judge or arbitrator, a mediator does not determine liability, issue a binding decision or compel a party to accept a proposal. The mediator facilitates communication, identifies the areas of disagreement and assists the parties in developing a settlement.

The parties retain control over:

• Whether they will reach a settlement;
• The amount to be paid;
• The timing and method of payment;
• The currency of payment;
• Interest and default provisions;
• Delivery and performance obligations;
• The continuation or termination of the commercial relationship;
• The withdrawal of pending lawsuits or enforcement proceedings;
• Confidentiality and non-disparagement obligations;
• Security, guarantees and collateral.

Commercial mediation may be either mandatory or voluntary.

Mandatory commercial mediation must be completed before filing specified commercial lawsuits. Voluntary commercial mediation may be used whenever the dispute is legally suitable for mediation, even if the law does not require a prior mediation application.

Is Commercial Mediation Mandatory in Turkey?

Commercial mediation is mandatory for commercial lawsuits falling within Article 5/A of the Turkish Commercial Code.

The Ministry of Justice explains that, under Article 5/A, applying to a mediator before filing a lawsuit is a condition of action in commercial cases concerning claims for the payment of a sum of money or compensation.

Legislative amendments later clarified and expanded the wording of Article 5/A. The provision now expressly covers certain commercial lawsuits involving:

• Payment of a sum of money;
• Compensation;
• Annulment of an objection;
• Negative declaratory relief;
• Restitution.

The amendments were intended to remove disagreements concerning whether a claimant could avoid mandatory mediation by choosing a negative declaratory or restitution action instead of a direct receivables claim.

However, not every dispute between companies is automatically subject to mandatory mediation. The dispute must first qualify as a commercial action under the Turkish Commercial Code or another statute. The remedy sought must then fall within the scope of Article 5/A.

A legal assessment should therefore address two separate questions:

1. Is the dispute classified as a commercial action?
2. Is the type of claim covered by mandatory commercial mediation?

What Is a Commercial Action Under Turkish Law?

Turkish law distinguishes between absolute commercial actions and relative commercial actions.

An absolute commercial action is considered commercial because of its subject matter, regardless of whether both parties are merchants. Disputes arising from matters expressly regulated as commercial may fall within this category.

A relative commercial action generally concerns transactions related to the commercial enterprises of both parties.

The classification may depend on several factors, including:

• The legal status of the parties;
• Whether the parties act as merchants;
• Whether the transaction relates to a commercial enterprise;
• The subject matter of the agreement;
• The legal basis of the claim;
• The court that would have jurisdiction;
• Whether another statute classifies the dispute as commercial.

A dispute does not necessarily become commercial merely because one party is a limited company or joint-stock company. Similarly, the use of a commercial contract title does not alone determine the legal classification.

The substance of the transaction and the relief requested must be examined.

Which Commercial Disputes Require Mediation Before Litigation?

Mandatory commercial mediation may apply to a wide range of business disputes.

Unpaid Commercial Invoices

Claims based on unpaid invoices are among the most common commercial mediation matters in Turkey.

These disputes may arise from:

• Sale of goods;
• Supply agreements;
• Service contracts;
• Consultancy services;
• Construction works;
• Software services;
• Maintenance agreements;
• Transportation services;
• Advertising and marketing services;
• Manufacturing agreements.

The parties may dispute whether the goods were delivered, whether the service was properly performed, whether the invoice was accepted or whether a set-off right exists.

Before filing a lawsuit for payment, the creditor must determine whether the claim qualifies as a commercial dispute subject to mandatory mediation.

Breach of Contract Claims

Commercial compensation claims arising from breach of contract generally fall within mandatory mediation where the dispute qualifies as a commercial action.

Examples include claims based on:

• Failure to deliver goods;
• Late delivery;
• Defective performance;
• Failure to meet technical specifications;
• Unlawful termination;
• Violation of exclusivity;
• Breach of confidentiality;
• Failure to meet minimum purchase obligations;
• Breach of a non-compete obligation;
• Failure to obtain permits or approvals;
• Delay in completing a project.

The parties may negotiate not only monetary compensation but also substitute performance, revised deadlines, replacement goods or changes to the underlying contract.

Distribution and Dealership Disputes

Foreign manufacturers frequently enter the Turkish market through distributors, dealers, resellers or commercial agents.

Disputes may concern:

• Unpaid purchase prices;
• Minimum sales commitments;
• Territory restrictions;
• Exclusivity;
• Customer ownership;
• Marketing obligations;
• Stock repurchase;
• Termination compensation;
• Post-termination commissions;
• Use of trademarks;
• Return of promotional materials.

Where the claimant seeks a monetary receivable or compensation, mandatory commercial mediation may apply.

Agency Agreement Disputes

Commercial agency disputes may involve commission payments, portfolio compensation, exclusivity, termination and customer information.

A foreign principal terminating a Turkish agency relationship may face claims for unpaid commissions or statutory compensation. These claims may have to be submitted to mediation before a court action is filed.

The parties should also examine whether the agreement contains a valid arbitration or jurisdiction clause and how that clause interacts with the mediation process.

Construction and Infrastructure Disputes

Construction disputes are often technically complex and financially significant.

Commercial mediation may be used for disputes relating to:

• Progress payments;
• Additional works;
• Delay penalties;
• Defective construction;
• Provisional or final acceptance;
• Performance bonds;
• Retention amounts;
• Price escalation;
• Variation orders;
• Subcontractor payments;
• Termination of the construction contract.

Mediation may be particularly useful where the parties wish to complete the project rather than terminate their relationship.

A settlement may include a new work schedule, release of guarantees, revised specifications, staged payments or appointment of an independent technical expert.

Shareholder and Company Disputes

Some company and shareholder disputes are subject to mandatory mediation, while others are not.

Monetary claims may include:

• Unpaid dividends;
• Share transfer payments;
• Shareholder loan receivables;
• Capital contribution obligations;
• Compensation for breach of a shareholders’ agreement;
• Reimbursement of company expenses;
• Claims arising from exit mechanisms.

By contrast, actions seeking annulment of a general assembly decision, dissolution of a company, removal of a director or registration of a corporate resolution may not fall within Article 5/A merely because they concern a company.

The primary remedy requested is decisive. Where the dispute combines monetary and non-monetary claims, the scope of mandatory mediation should be analysed separately for each claim.

Banking and Finance Disputes

Commercial mediation may apply to disputes involving:

• Corporate loans;
• Credit facilities;
• Letters of credit;
• Bank guarantees;
• Factoring;
• Financial leasing;
• Payment services;
• Foreign exchange transactions;
• Collateral agreements;
• Restructuring protocols.

Banking disputes may require careful classification because a transaction involving an individual may be governed by consumer law rather than commercial law. By contrast, a loan obtained for business purposes will generally be evaluated within the commercial framework.

Insurance Disputes

Insurance-related claims may constitute commercial actions.

Commercial mediation may be relevant to disputes concerning:

• Property insurance;
• Cargo insurance;
• Liability insurance;
• Business interruption insurance;
• Construction all-risk insurance;
• Professional liability insurance;
• Marine insurance;
• Credit insurance.

The claimant must assess whether the dispute is commercial, consumer-related or subject to a specialised insurance arbitration procedure.

Transportation and Logistics Disputes

Turkey is an important transportation and logistics centre connecting Europe, Asia and the Middle East.

Commercial mediation may be used for disputes arising from:

• Road transport;
• Sea carriage;
• Air cargo;
• Freight forwarding;
• Warehousing;
• Customs-related services;
• Demurrage and detention;
• Loss of cargo;
• Damage to goods;
• Late delivery;
• Unpaid freight charges.

International conventions and contractual limitations of liability may affect the parties’ legal positions. These issues should be evaluated before settlement negotiations begin.

Intellectual Property-Related Monetary Claims

Commercial mediation may also be relevant to monetary disputes involving:

• Trademark licences;
• Patent licences;
• Software licences;
• Royalties;
• Franchise agreements;
• Unauthorised use of intellectual property;
• Compensation for infringement;
• Breach of confidentiality;
• Technology transfer agreements.

However, requests for cancellation, invalidity, registration or other non-monetary remedies may require a separate analysis.

Competition and Unfair Competition Claims

Compensation claims based on unfair competition may qualify as commercial disputes.

Examples include:

• Misleading advertising;
• Misappropriation of trade secrets;
• Customer diversion;
• False statements about a competitor;
• Unauthorised use of commercial materials;
• Breach of post-contractual restrictions.

Where the claimant seeks compensation or payment, mandatory mediation may apply.

Annulment of Objection Actions

In Turkey, a creditor may initiate enforcement proceedings without first obtaining a court judgment. The debtor may object to the debt, signature, interest or jurisdiction.

The objection generally suspends the enforcement process. The creditor may then file an action for annulment of the objection.

Where the underlying debt is commercial and monetary, the creditor may be required to apply for mediation before filing the annulment action.

This is important because actions for annulment of objection are subject to specific deadlines. A creditor must coordinate the mediation application with the statutory period for filing the action.

A poorly defined mediation application may also create debate over whether the claim later filed before the court is identical to the matter submitted to mediation.

Negative Declaratory Actions

A negative declaratory action seeks a judgment that the claimant does not owe the alleged debt.

Such actions are frequently filed where:

• A promissory note is alleged to be invalid;
• A company denies an invoice debt;
• A guarantee is disputed;
• Enforcement proceedings have been commenced;
• A payment obligation is alleged to have been discharged;
• A signature or authority is challenged.

Following the legislative clarification, commercial negative declaratory actions involving monetary disputes are expressly included within the mandatory mediation framework.

Therefore, framing the lawsuit as a declaration of non-liability does not necessarily eliminate the obligation to complete mediation.

Restitution Actions

A restitution action may be filed where a debtor claims that money was wrongfully collected, particularly through enforcement proceedings.

If the underlying dispute is commercial, mediation may be required before filing a restitution lawsuit.

Typical issues include:

• Payment of a non-existent debt;
• Payment under protest;
• Collection based on an invalid document;
• Excessive collection;
• Duplicate payment;
• Enforcement against the wrong company.

Which Commercial Disputes Are Not Subject to Mandatory Mediation?

Commercial disputes falling outside Article 5/A may still be suitable for voluntary mediation.

Possible examples include disputes where the principal relief is:

• Annulment of a corporate resolution;
• Registration or deletion from a commercial registry;
• Dissolution of a company;
• Removal of a manager;
• Determination of corporate status;
• Prohibition of specific conduct;
• Delivery of documents;
• Establishment of a right that is not primarily monetary.

However, the existence of a non-monetary remedy does not automatically exclude mediation. A lawsuit may contain both monetary and non-monetary requests.

The legal classification must be based on the actual relief sought rather than only the title of the proceedings.

The Ministry of Justice’s specialist publication confirms that commercial disputes outside the mandatory scope may still be referred to voluntary mediation where they are suitable for mediation under Law No. 6325.

How Does the Commercial Mediation Process Work?

Application to the Mediation Office

An application is generally submitted to the mediation office located at the courthouse within the territorial jurisdiction of the competent court.

The application should accurately identify:

• The claimant;
• The opposing party;
• Company registration details;
• Addresses and contact information;
• The commercial relationship;
• The amount claimed;
• The type of legal remedy;
• Relevant contracts and invoices;
• Pending enforcement proceedings;
• Foreign currency claims;
• Interest requests.

An incomplete or incorrectly formulated application may later create procedural objections.

Appointment of the Mediator

The mediation office appoints a registered mediator unless the parties have jointly selected an authorised mediator.

Commercial cases may be assigned to mediators with relevant specialisation.

The mediator contacts the parties and organises the first meeting.

Representation of Companies

A company may participate through an authorised representative or lawyer.

The representative’s authority must be carefully verified. Depending on the company’s structure and the settlement terms, the representative may need express authority to:

• Settle;
• Release claims;
• Accept debt;
• Waive rights;
• Agree to instalments;
• Provide security;
• Withdraw lawsuits;
• Terminate contracts.

Foreign companies should provide corporate documents and powers of attorney that comply with Turkish legal requirements. Apostille, consular legalisation and sworn translation may be required.

Mediation Meetings

Commercial mediation meetings may be conducted:

• In person;
• Online;
• Through video conference;
• Through joint sessions;
• Through private sessions.

Separate meetings may be useful where commercially sensitive information cannot be disclosed directly to the other party.

Termination of the Procedure

The procedure ends when:

• The parties reach a settlement;
• The parties do not reach a settlement;
• One party refuses to continue;
• A party cannot be contacted;
• A party fails to attend;
• The mediator determines that continuation is inappropriate.

A final report is then issued.

What Happens If Mediation Is Not Completed?

Where mediation is a condition of action and the claimant files a lawsuit without applying to a mediator, the court may dismiss the case procedurally without examining its merits.

The Ministry of Justice’s specialist commercial mediation publication states that where a lawsuit is filed without completing mandatory mediation, the action is dismissed due to the absence of a condition of action.

If mediation was completed but the final report was not attached, the court may grant time for the missing document to be submitted, subject to the applicable statutory procedure.

This distinction is important:

• Failure to apply to mediation is a substantive procedural deficiency.
• Failure to attach an existing final report may be a remediable documentary deficiency.

Confidentiality in Commercial Mediation

Confidentiality is particularly important for businesses.

Commercial mediation may involve:

• Pricing strategies;
• Customer lists;
• Trade secrets;
• Financial difficulties;
• Manufacturing processes;
• Settlement offers;
• Internal correspondence;
• Product defects;
• Market strategy;
• Company valuations.

Information and proposals disclosed solely during mediation are generally protected by confidentiality rules.

The parties may strengthen statutory confidentiality through an additional agreement covering:

• Employees and advisers;
• Electronic documents;
• Return or destruction of records;
• Public announcements;
• Regulatory disclosure;
• Permitted disclosures to auditors or insurers;
• Contractual penalties for breach.

Confidentiality does not necessarily protect documents that already existed independently of the mediation process. A document does not become immune from use merely because it was also presented to the mediator.

Limitation Periods During Commercial Mediation

The legal framework protects claimants against the expiry of limitation and forfeiture periods during mandatory mediation.

The relevant period between commencement and termination of mediation is treated according to the suspension or non-running rules in Law No. 6325.

Nevertheless, businesses should not wait until the final day to apply.

Potential risks include:

• Applying against the wrong legal entity;
• Omitting a guarantor;
• Incorrectly describing the claim;
• Failing to include part of the receivable;
• Using an incorrect company name;
• Misidentifying a branch as a separate legal entity;
• Failing to address a foreign counterparty;
• Missing a separate contractual notice period.

Mediation does not necessarily replace contractual notice, cure or termination requirements.

Drafting a Commercial Mediation Settlement Agreement

The settlement agreement is the most important document in the process.

A professionally drafted commercial mediation agreement should address the following matters.

Identification of the Parties

The agreement should include:

• Full company names;
• Registration numbers;
• Tax numbers;
• Registered offices;
• Names and titles of authorised signatories;
• Authority documents.

Definition of the Dispute

The agreement should identify:

• The relevant contract;
• Invoice numbers;
• Delivery dates;
• Enforcement files;
• Court files;
• Claims and counterclaims;
• Currency;
• Interest;
• Disputed periods.

A vague description may lead to later disagreement over the scope of the settlement.

Payment Provisions

The agreement should state:

• Total amount;
• Currency;
• Instalment dates;
• Bank account;
• Transfer charges;
• Tax deductions;
• Exchange-rate mechanism;
• Interest;
• Early payment rights.

Default Provisions

A settlement should explain what happens if payment is late.

Possible clauses include:

• Acceleration of all remaining instalments;
• Default interest;
• Loss of discount;
• Immediate enforceability;
• Contractual penalty;
• Right to continue existing proceedings;
• Enforcement of guarantees.

Security

A creditor may require:

• Bank guarantee;
• Corporate guarantee;
• Personal guarantee;
• Pledge;
• Mortgage;
• Promissory note;
• Escrow;
• Retention of title.

The validity and form of each security instrument must be examined separately.

Release Clauses

A release should specify:

• Which claims are released;
• Whether the release is conditional on full payment;
• Whether unknown claims are included;
• Whether affiliated companies are covered;
• Whether directors or guarantors are released;
• Whether tax, warranty or indemnity claims survive.

A creditor should generally avoid granting an unconditional final release before receiving full payment unless adequate security exists.

Pending Proceedings

The agreement should state what will happen to:

• Lawsuits;
• Enforcement proceedings;
• Interim attachments;
• Preliminary injunctions;
• Arbitration proceedings;
• Criminal complaints;
• Bankruptcy applications.

The parties should define who will bear court fees, enforcement expenses and lawyers’ fees.

Governing Law and Dispute Resolution

The agreement should address:

• Governing law;
• Jurisdiction;
• Arbitration;
• Place of enforcement;
• Language;
• Controlling language in bilingual agreements.

These issues are especially important for foreign investors.

Enforceability of Commercial Mediation Agreements

A mediation settlement is binding as a private law agreement when validly executed.

The parties may request an enforceability annotation from the competent court. An agreement bearing such an annotation is treated as a document equivalent to a court judgment for enforcement purposes.

Where the settlement is signed jointly by the parties, their lawyers and the mediator in accordance with the statutory requirements, it may qualify as an enforceable document without a separate enforceability annotation.

Nevertheless, enforceability should not be confused with validity.

A settlement may still be challenged or become difficult to enforce if:

• The signatory lacked authority;
• The obligation is unclear;
• The subject matter is legally impossible;
• Mandatory form requirements were not followed;
• The agreement violates public policy;
• The settlement concerns rights that the parties cannot freely dispose of;
• A foreign company was incorrectly identified;
• Conditions precedent were not defined.

For high-value transactions, the agreement should be drafted as though immediate enforcement may later become necessary.

Commercial Mediation and Foreign Investors

Foreign investors may use commercial mediation in Turkey to resolve disputes with:

• Turkish suppliers;
• Joint venture partners;
• Distributors;
• Contractors;
• Customers;
• Banks;
• Insurers;
• Logistics providers;
• Landlords;
• Technology partners.

Commercial mediation may be attractive to foreign investors because it can reduce the practical difficulties associated with litigation in a foreign legal system.

Advantages may include:

• Confidentiality;
• English-language negotiations;
• Remote participation;
• Faster resolution;
• Flexible payment structures;
• Preservation of commercial relationships;
• Reduced translation and expert costs;
• Enforceable settlement terms.

However, foreign investors should not assume that general international settlement language is sufficient under Turkish law.

A settlement should be reviewed for compliance with:

• Turkish company law;
• Representation rules;
• Stamp tax implications;
• Withholding tax;
• Foreign exchange rules;
• Competition law;
• Data protection;
• Customs law;
• Sector-specific regulations;
• Enforcement law.

The Singapore Convention and International Commercial Mediation

Turkey has ratified the United Nations Convention on International Settlement Agreements Resulting from Mediation, known as the Singapore Convention on Mediation. The Convention entered into force for Turkey on 11 April 2022.

The Convention applies to written international settlement agreements resulting from mediation and concluded to resolve commercial disputes. It excludes certain consumer, family, inheritance and employment matters.

The Convention is intended to facilitate direct enforcement of qualifying international mediated settlement agreements in contracting states.

For an international agreement, parties should consider:

• Whether the settlement is international;
• Whether it results from mediation;
• Whether it is commercial;
• Whether a Convention exclusion applies;
• Whether the enforcement state is a party;
• Whether reservations have been made;
• Whether the agreement is already enforceable as a judgment or arbitral award;
• Whether proof of mediation is available.

The Singapore Convention does not eliminate the need for careful drafting. Enforcement may still be refused on specified grounds, including incapacity, invalidity, serious mediator misconduct, public policy or unclear obligations.

Commercial Mediation Versus Litigation

Commercial litigation may be necessary where:

• Urgent interim relief is required;
• Evidence must be preserved;
• Fraud is alleged;
• A precedent is important;
• A party refuses meaningful negotiation;
• Asset dissipation is suspected;
• The claimant requires a binding judicial determination.

Mediation may be preferable where:

• The parties have an ongoing relationship;
• Payment timing is more important than immediate judgment;
• Confidentiality is essential;
• The facts are commercially complex;
• Litigation costs are disproportionate;
• A creative solution is possible;
• The debtor can pay only through restructuring.

Mediation and litigation should not be viewed as mutually exclusive. A company may preserve interim remedies and enforcement options while also pursuing settlement.

Commercial Mediation Versus Arbitration

Arbitration produces a binding decision by an arbitrator or tribunal. Mediation produces a settlement only if the parties agree.

Arbitration may be suitable for high-value international disputes requiring a final determination. Mediation may be more suitable where commercial flexibility and preservation of the relationship are priorities.

Parties may combine both methods through clauses requiring:

1. Negotiation;
2. Mediation;
3. Arbitration if mediation fails.

Such multi-tier dispute resolution clauses must be drafted carefully. Unclear deadlines or procedural steps may create jurisdictional objections.

The Role of a Turkish Commercial Mediation Lawyer

A Turkish commercial mediation lawyer can assist a company by:

• Determining whether mediation is mandatory;
• Identifying the correct legal entity;
• Protecting limitation periods;
• Calculating principal, interest and penalties;
• Reviewing contracts and invoices;
• Analysing jurisdiction and arbitration clauses;
• Preparing a negotiation strategy;
• Assessing litigation risks;
• Verifying signatory authority;
• Drafting security provisions;
• Preparing an enforceable agreement;
• Coordinating withdrawal of proceedings.

For foreign investors, counsel may also coordinate:

• Apostilled powers of attorney;
• Corporate documents;
• Sworn translations;
• Bilingual settlement agreements;
• Tax advice;
• Cross-border enforcement planning.

Frequently Asked Questions About Commercial Mediation in Turkey

Is commercial mediation compulsory for every company dispute?

No. It is compulsory only where the dispute qualifies as a commercial action and falls within the statutory scope of mandatory mediation.

Must the parties reach an agreement?

No. The obligation is to apply to mediation, not to settle.

Can a foreign company participate remotely?

Yes. Online meetings may be conducted where appropriate.

Can a foreign company be represented by a Turkish lawyer?

Yes. A properly authorised Turkish lawyer may represent the company.

Can mediation be conducted in English?

The parties may negotiate in English, although official documents and court-related procedures may require Turkish versions or sworn translations.

What happens if the defendant refuses to participate?

The mediator may terminate the process and prepare a final report. The claimant may then proceed to court, subject to procedural rules.

Is the settlement directly enforceable?

It may be directly enforceable where the statutory signature requirements are met. In other cases, an enforceability annotation may be requested.

Can the parties agree on payment in foreign currency?

Foreign-currency settlement terms may be possible, subject to mandatory Turkish foreign-exchange legislation and the nature of the underlying transaction.

Does mediation stop enforcement proceedings?

Not automatically. Existing enforcement proceedings and interim measures must be addressed separately.

Can the parties preserve their commercial relationship?

Yes. Mediation may include revised prices, new delivery schedules, ongoing supply obligations or amended contract terms.

Conclusion

Commercial mediation in Turkey is now a fundamental part of dispute resolution for companies and foreign investors. Businesses involved in monetary commercial disputes may be required to complete mediation before filing a lawsuit.

The mandatory framework covers many receivables and compensation claims, including unpaid invoices, breach of contract damages, annulment of objection actions, negative declaratory actions and restitution claims.

Commercial mediation offers significant advantages, including confidentiality, speed, flexibility and the possibility of preserving valuable business relationships. It also allows the parties to design solutions that a court could not easily impose, such as instalment plans, revised performance obligations, guarantees and continuing cooperation.

However, mediation should not be treated as an informal conversation without legal consequences. A settlement may waive substantial rights and may become directly enforceable against a company.

Companies should therefore approach mediation with a clear legal and commercial strategy. The parties must verify the scope of the claims, limitation periods, signatory authority, tax consequences, security arrangements, default provisions and enforceability.

Foreign investors should obtain Turkish legal advice before signing a settlement involving Turkish law, Turkish assets or Turkish counterparties. Proper legal representation can help ensure that the process satisfies mandatory procedural requirements and that the final settlement is clear, valid and capable of enforcement.

Disclaimer: This article is prepared for general informational purposes and does not constitute legal advice. Turkish commercial and mediation legislation may be amended. Each dispute must be reviewed according to its specific facts, contractual provisions and the law in force on the relevant date.