Contract Chooses Foreign Law but Lawsuit Is Filed in Turkey: Which Law Will the Court Apply? – 2026 Updated Guide

What law applies when a contract chooses foreign law but the lawsuit is filed in Turkey? Learn about Turkish procedure, foreign substantive law, mandatory rules, jurisdiction, and evidence.

When a contract chooses foreign law but a lawsuit is filed in Turkey, the Turkish court may apply the selected foreign law to the substantive dispute. However, Turkish procedural law will generally govern how the case proceeds before the Turkish court.

This distinction is essential. A contract may be governed by English, German, Swiss, French, or another foreign law while the Turkish court applies Turkish rules to service, pleadings, deadlines, evidence, hearings, court fees, and enforcement.

The result depends on the wording of the contract, the validity of the choice-of-law clause, the court’s jurisdiction, mandatory Turkish rules, public policy, and the parties’ ability to establish the content of the foreign law.

Governing Law and Procedural Law

Issue	Law that may apply
Contract interpretation	Chosen foreign law, if valid
Breach and contractual remedies	Usually chosen substantive law
Service of process	Turkish procedural rules
Court deadlines	Turkish procedural rules
Pleadings and hearings	Turkish procedural rules
Evidence procedure	Generally Turkish procedural rules
Turkish real estate	Potentially mandatory Turkish rules
Company and corporate matters	Potentially Turkish mandatory rules
Interim attachment in Turkey	Turkish procedural and enforcement rules
Recognition and enforcement	Applicable Turkish or foreign enforcement rules

The distinction is not always simple. Certain issues may be classified differently depending on the applicable conflict-of-laws rules.

Is the Foreign-Law Clause Valid?

The Turkish court may first examine whether the parties validly chose foreign law.

The clause should be clear and connected to the contract. The court may review:

• Whether the contract was properly signed;
• Whether the signatory had authority;
• Whether the clause covers the dispute;
• Whether the clause was included in the general terms;
• Whether the clause conflicts with another provision;
• Whether the parties later amended the governing law;
• Whether mandatory rules restrict the choice.

A clause stating that “the contract shall be governed by foreign law” may require interpretation if the chosen legal system is not clearly identified.

Foreign Law Does Not Automatically Exclude Turkish Law

Choosing foreign law does not remove every Turkish legal rule from the transaction.

Turkish mandatory rules may remain relevant to matters such as:

• Turkish real estate;
• Internal company governance;
• Insolvency;
• Employment;
• Consumer protection;
• Competition;
• Product safety;
• Customs;
• Tax;
• Intellectual property registration;
• Public order;
• Regulatory compliance.

A foreign-law clause may govern the parties’ contractual rights, but a Turkish authority or court may still apply mandatory Turkish rules to a regulated subject.

Turkish Courts Apply Turkish Procedure

If the lawsuit proceeds before a Turkish court, Turkish procedural rules will generally govern the case.

This may include:

• Filing requirements;
• Service of process;
• Response deadlines;
• Court fees;
• Evidence submission;
• Expert appointments;
• Witness examination;
• Interim measures;
• Appeals;
• Enforcement of the judgment.

Foreign companies should not assume that the procedural rules of the selected foreign law apply in a Turkish courtroom.

The pleadings and supporting documents may also need to be submitted in Turkish or accompanied by appropriate translations.

Jurisdiction Is Separate from Governing Law

A foreign governing-law clause does not automatically give Turkish courts jurisdiction.

The court should separately determine whether it has authority to hear the dispute. Jurisdiction may arise from:

• A Turkish court-selection clause;
• Performance in Turkey;
• A Turkish branch or representative;
• Turkish assets or property;
• A harmful event in Turkey;
• Mandatory jurisdiction rules;
• The defendant’s connection with Turkey.

If the contract selects a foreign court or arbitration, the defendant may be able to challenge the Turkish proceedings.

Foreign Court-Selection Clause

The contract may state that disputes must be brought before the courts of another country.

A Turkish court may need to assess whether the clause is valid, exclusive, sufficiently clear, and applicable to the particular claim.

The defendant should raise a jurisdiction objection at the correct procedural stage. Participating fully in the merits without preserving the objection may create risks.

A foreign court-selection clause and a foreign governing-law clause should be reviewed separately.

Arbitration Clause

If the contract contains a valid arbitration clause, the Turkish court may not hear the merits of the dispute.

However, Turkish courts may still be involved in:

• Interim injunctions;
• Precautionary attachments;
• Evidence preservation;
• Service;
• Assistance with arbitration;
• Recognition and enforcement of an award.

The bank, carrier, insurer, subsidiary, director, or guarantor may not be bound by the arbitration clause if it did not sign the agreement.

How Is Foreign Law Proven?

The party relying on foreign law should provide reliable evidence of its content.

This may include:

• Official legal texts;
• Certified translations;
• Foreign court decisions;
• Legal opinions;
• Expert reports;
• Academic sources;
• Contract-law commentary;
• Evidence of the foreign law’s current status.

The Turkish court may investigate the foreign law, but the parties should not assume that the court will know or automatically apply every foreign rule.

A failure to establish the content of foreign law may create delay and may affect how the court resolves the issue.

Contract Interpretation and Language

The language of the contract may become important where the parties signed English and Turkish versions or where the contract contains conflicting texts.

The agreement should specify:

• The controlling language;
• The governing law;
• The forum;
• The arbitration language;
• The meaning of defined terms;
• The priority of annexes;
• The effect of translated documents.

A Turkish translation may be required for court proceedings even if the controlling contract language is English.

Mandatory Turkish Rules and Public Policy

A Turkish court may refuse to apply a foreign rule if its result would violate Turkish public policy or a mandatory legal principle.

Public-policy analysis is fact-specific. It may arise in cases involving fraud, illegality, employment rights, consumer protection, competition, sanctions, insolvency, or regulated assets.

The existence of a foreign-law clause does not allow parties to contract out of every mandatory Turkish requirement.

Interim Measures in Turkey

Even if foreign law governs the merits or arbitration is required, a party may seek interim protection from a Turkish court when Turkish assets, goods, evidence, or receivables are at risk.

Potential measures may include:

• Interim injunction;
• Precautionary attachment;
• Evidence preservation;
• Protection of goods;
• Restriction on asset transfers;
• Preservation of corporate records.

The applicant must satisfy the applicable Turkish procedural requirements. Security may be required.

Commercial Mediation

Certain commercial monetary disputes may require pre-litigation mediation before a Turkish lawsuit proceeds.

The parties should determine whether mediation is mandatory, contractually required, or commercially useful. A foreign company may participate through an authorized representative or Turkish lawyer, subject to the required authority.

Evidence and Foreign Companies

Foreign companies should preserve contracts, amendments, invoices, payment records, delivery documents, emails, messages, board approvals, technical reports, financial records, and notices.

Digital evidence may include electronic signatures, cloud documents, procurement systems, online invoices, accounting records, and communication metadata.

Evidence should be collected lawfully and translated accurately where necessary.

Enforcement of the Turkish Judgment

If the Turkish court issues a judgment, enforcement may take place against Turkish bank accounts, real estate, receivables, inventory, vehicles, shares, or other assets.

If the judgment must be enforced abroad, the company should assess recognition and enforcement requirements in the relevant country.

A foreign-law clause does not prevent a Turkish judgment from being enforced in Turkey if the Turkish court had jurisdiction.

2026 Practical Considerations

In 2026, international contracts increasingly use electronic signatures, online contracting platforms, digital notices, remote hearings, cloud evidence, and cross-border data storage.

Foreign companies should draft separate and precise clauses for governing law, jurisdiction, arbitration, service, language, interim measures, evidence, and enforcement.

If a lawsuit is filed in Turkey despite a foreign-law or arbitration clause, the company should immediately review service, deadlines, jurisdiction, applicable law, and the possibility of interim protection.

Lawyer Fırat Fesih Kaya assists foreign companies with Turkish jurisdiction, foreign governing law, arbitration, commercial litigation, mediation, interim measures, and cross-border enforcement.

Frequently Asked Questions (FAQ)

1. If a contract chooses foreign law, will a Turkish court apply that law?
Generally, the Turkish court may apply the chosen foreign law to substantive contractual issues if the clause is valid and applicable.

2. Which law governs the procedure in a Turkish court?
Turkish procedural law generally governs pleadings, deadlines, service, evidence procedure, hearings, and appeals.

3. Does foreign governing law prevent a lawsuit in Turkey?
No. Governing law and jurisdiction are separate. A Turkish court may still have jurisdiction unless the contract selects another forum or arbitration.

4. Can a Turkish court refuse to apply foreign law?
Potentially, if foreign law is not established, the clause is invalid, mandatory Turkish rules apply, or public policy is involved.

5. How is foreign law proven in Turkey?
Certified legal texts, translations, expert opinions, foreign judgments, and other reliable legal materials may be submitted.

6. Does an arbitration clause prevent all Turkish court involvement?
Not necessarily. Turkish courts may still assist with interim measures, evidence, service, and enforcement.

7. Can Turkish mandatory rules override foreign law?
Potentially. Matters involving real estate, insolvency, employment, consumer protection, competition, and public order may involve mandatory Turkish rules.

8. Can a foreign company challenge Turkish jurisdiction?
Yes, where the contract selects a foreign court or arbitration, or Turkey lacks a sufficient connection with the dispute.

9. Can interim measures be requested in Turkey when foreign law applies?
Potentially, especially where Turkish assets, goods, or evidence require urgent protection.

10. What should a foreign company do after being sued in Turkey?
It should preserve documents, verify service, calculate deadlines, review governing law and jurisdiction, and obtain Turkish legal advice immediately.

This article is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer about your specific circumstances to avoid any loss of rights.

Expert Legal Support for Foreign-Law Contract Disputes

Expert legal support is essential to avoid losing valuable rights. By working with a lawyer experienced in Turkish jurisdiction, foreign governing law, arbitration, commercial litigation, evidence, mediation, interim measures, and enforcement, foreign companies can protect their legal and financial interests. Fırat Fesih Kaya Law Office provides professional legal support for international contract disputes in Turkey and abroad.

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