Jurisdiction Agreement and the Principle of Exclusive Jurisdiction

Entrance

In civil procedural law a jurisdiction agreementmeans that the parties determine in advance in which court a dispute between them will be heard.
This institution, especially in contractual relationships, allows parties freedom regarding the venue of proceedings, thus procedural economy and predictability .

However, this freedom does not apply to every type of case.
In some cases, the principle of exclusive jurisdiction comes into play, and the right of the parties to enter into a jurisdiction agreement is restricted.

This article will examine in detail the legal basis, validity requirements, scope, and the areas of application of the exclusive jurisdiction principle in jurisdiction agreements.

Definition and Purpose of the Authorization Agreement

A jurisdiction agreement is a written agreement between parties specifying which local court will have jurisdiction in resolving disputes arising from their legal relationship .

This matter is clearly regulated in Article 17 of the Code of Civil Procedure:

"Merchants or public legal entities may enter into a written agreement regarding the determination of the competent court for any dispute that has arisen or may arise between them."

This regulation grants the parties the freedom to choose the venue of litigation .
The aim is to ensure both faster resolution of disputes and a balanced workload for the courts.

Terms of the Authorization Agreement

For an authorization agreement to be valid, certain elements must be present simultaneously:

🔹 1. Written Form Requirement

The power of attorney agreement must in writing .
This formal requirement is essential for proving the agreement and ensuring legal certainty.

Electronic mail, digital contracts, and electronic signatures are also considered forms of written communication.
Oral agreements are not valid.

🔹 2. Being a Merchant or a Public Legal Entity

According to Article 17 of the Code of Civil Procedure, only:

Merchants (in the sense of the Turkish Commercial Code),
Public legal entities
can enter into authorization agreements.

Natural persons (for example, a consumer) are generally not included in this scope.

🔹 3. Based on a Specific Legal Relationship

A power of attorney agreement should cover disputes arising from a specific contract, not just abstractly

For example:

"Istanbul courts shall have jurisdiction over all disputes arising from the subcontracting agreement between the parties."

🔹 4. At least one Turkish court must have jurisdiction

The parties may designate a foreign court as having jurisdiction; however, under Turkish law, at least one Turkish court must also have jurisdiction.
Otherwise, the contract partially invalid .

Types of Authorization Agreements

Jurisdiction agreements can be classified into three categories according to the parties' intentions and the type of authority granted:

Type	Explanation	Conclusion
Founding Authority Agreement	It grants jurisdiction to a court that would normally be incompetent.	The court chosen by the parties shall have jurisdiction.
Restrictive Authority Agreement	It designates only one of several competent courts.	Other courts become incompetent.
Expansionary Authorization Agreement	It also grants authority to courts that normally lack jurisdiction.	The parties may designate additional courts.

Limitations of the Authorization Agreement

Although parties are given freedom of choice, there are certain circumstances where a jurisdiction agreement cannot be concluded.
The purpose of these prohibitions is to protect the weaker party and prevent the disruption of public order.

🚫 Circumstances in Which the Authorization Agreement is Invalid:

Consumer Contracts
(Article 73 of the Consumer Protection Law No. 6502):
A consumer cannot determine a location that is not in their favor through an authorization agreement before the contract is concluded.
Otherwise, the clause is absolutely null and void.
Employer-Labor Relations : Employment contracts that include authorization agreements detrimental to the employee are invalid. The employee has the right to file a lawsuit in the court of their place of residence
In rental agreements,
jurisdiction agreements cannot be made in rental cases; the jurisdiction lies with the Civil Court of Peace.
In cases of absolute jurisdiction
, where the law designates a specific local court as having absolute jurisdiction, it is not possible to designate another location.

Exclusive Jurisdiction Principle

Exclusive jurisdictionis the principle that stipulates that only a specific court has jurisdiction in certain cases.
In these situations, the parties cannot determine a different location through a jurisdiction agreement.

🔹 Exclusive Jurisdiction Cases:

Cases concerning the ownership of immovable property:
(Code of Civil Procedure, Article 12) → The court of the place where the immovable property is located has jurisdiction.
Guardianship matters:
(Code of Civil Procedure, Article 384) → The court of the place of residence of the person under guardianship.
Bankruptcy and composition proceedings:
(Article 154 of the Bankruptcy Law) → Debtor's place of business.
Lawsuits concerning the company headquarters:
(Turkish Commercial Code, Article 5) → Location of the company headquarters.

Any authorization agreements made in these areas are null and void.

Jurisdiction Agreements in Supreme Court Practice

The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2020/4533 E., Decision No. 2021/2841 K., stated:
“In contracts between merchants, the authorization clause is valid only if it is in writing. However, cases of absolute authorization are outside the scope of this freedom.”

The 9th Civil Chamber of the Supreme Court of Appeals, Case No. 2019/13245 E., Decision No. 2020/3147 K., stated:
"Authorization agreements made to the detriment of the employee are invalid, and the employee may always file a lawsuit in their place of residence."

These precedents demonstrate that jurisdiction agreements are only valid in relationships where there is a balance of power

The Connection Between Exclusive Authority and Public Order

Exclusive jurisdiction is a matter of public order.
Therefore, the judge is obliged to consider the court with exclusive jurisdiction ex officio, even if the parties do not object.
Otherwise, the decision null and void .

For example, in a lawsuit concerning the ownership of real estate, even if another location has been specified in the contract, the lawsuit in the location where the real estate is situated .

Common Mistakes in Practice

Lack of Contractual Clause:
Authorization agreements that are not in writing or not submitted via email are invalid.
Consumer Transactions:
The statement "Istanbul Courts have jurisdiction" on e-commerce websites is frequently deemed invalid.
Foreign Element:
If there is a foreign element between the parties, the jurisdiction agreement must also comply with the rules of international private law (Turkish Private International Law Act, Article 47).

Conclusion

Jurisdiction agreements are one of the most important reflections of the principle of respect for the will of the parties in the modern judicial system. However, this freedom only gains meaning when used fairly, balanced, and within the framework of legal security

Exclusive jurisdiction, however, defines the limits of this freedom by protecting public order. The balance between these two concepts safeguards both the individual right to seek justice and the integrity of the judicial system

"A power of attorney is the power of will;
exclusive power is the limit of the law."

Article 17 of the Turkish Code, protection in favor of the worker, public order, definitive jurisdiction, exclusive jurisdiction, contract between merchants, lawsuits concerning the ownership of immovable property, consumer lawsuits, procedural law, jurisdiction agreement.

Single Blog Title