Dispute resolution in the course of litigation is held with article 313 – 315 of Turkish Procedural Law. Article 313 states that dispute resolution is an agreement between the parties in order to cease the dispute partially or completely at the presence of the court.

According to Turkish Procedural Law number 6100, judge is obliged to invite the parties for settlement. Rejection of settlement by parties does not affect settlement possibility to use in further steps of the case. Accordingly, parties can agree on a settlement in any stage after rejection of settlement invitation in pre-examination stage of the litigation.

Settlement agreement can be concluded via attorneys in case that they are authorized with a proper POA (Power of Attorney) stating authorization for settlement. Undisputed matters in the case can be also added to the contract. The settlement agreement can also be formed based on conditional situations.

In the course of hearing the parties may also inform the court that they reached consensus for settlement. In that situation, this settlement must be reflected to hearing record subsequently the record must be read to the parties in the course of hearing.   Then the hearing record must be signed by the parties in the presence of the judge. Signature is the unique criteria for validity of the record. Settlement agreement can be also concluded outside of court.

The cost pertaining to judicial affairs is an important issue once it is required to determine. In case that any provision regarding judicial cost is lacking in the agreement, distribution of said cost would be in accordance with ratio of acceptance by parties. The settlement based on conditional situation is not a final judgment. On contrary, the settlement without agreement has some effect as final judgment. Therefore settlement agreements approved in the presence of the court can be executed by means of enforcement department.

Threat, error or fraud are the main elements to annul the settlement agreement which is also general as a continental law principle which applies to every type of contract approved by the parties.

According to Turkish Law, there is restriction for conclusion of a settlement agreement which is very crucial to be kept in mind.

There can’t be any settlement agreement for determination of paternity suit. There is also an important difference concerning family law. Settlement agreement can solely approved by the judge’s approval. Therefore, parties’ signature on separation agreement (divorce) is not sufficient to enforce it by the means of court due to necessity of judge’s approval.