Arbitration is a technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to private persons, by whose decision they agree to be bound. These private persons chosen to arbitrate a disagreement are arbitrators. Arbitrators do not have official title to conduct the cases that are transferred to them. However the parties have accepted the decision taken by the arbitrators by delegating the dispute to them and the arbitrators chosen to arbitrate a disagreement, as opposed to a court of law.
What specified here is “voluntary arbitration”, that means it is an arbitration method where the parties can apply by consenting. In fact the parties are not obliged to arbitrate for resolving disputes, the case can be conducted at court under normal condition.
In some cases it is necessary to apply to an arbitrator for resolving a dispute. This situation is called “obligatory arbitration. It is determined by special law provisions in what cases is the arbitration obligatory. By disputes subject to obligatory arbitration, the parties are not allowed to open a suit and obliged to apply to arbitrators who are determined by law.
Here the arbitrators are obliged to pronounce a sentence by executing the cases like a justice/judge within the framework of norm determined by law or by parties.
The decision of parties to arbitration is based on an arbitration agreement conducted between them before and after dispute arises. However it is possible to include in the written agreement between them as “arbitration clause” instead of conducting arbitration agreement.
In Turkish Law for resolving any kind of disputes through arbitration, the dispute shall be suitable to arbitrate. The parties may only apply to arbitrate in the matters for which they can take initiative freely. If there is no foreign factor in the mentioned relationship, in this case an internal arbitration shall be considered, however in case the legal relationship contains foreign factors the international arbitration shall be regarded.