Turkish Contract Law

Contract law is an essential aspect of business transactions as in many jurisdictions. All parties involved in a contract must abide by the terms and conditions outlined in the agreement. In Turkiye, contract law is considered as a part of the continental law and governed by the Turkish Code of Obligations.

The Turkish Code of Obligations

The Turkish Code of Obligations is based on the principle of freedom of contract, which means that the parties are free to choose the contracting party and determine the subjects of the contract, as long as they do not violate the mandatory rules of law, public order, morality, or personal rights. The Turkish Code of Obligations also provides some general rules and principles that apply to all contracts, such as good faith, interpretation, performance, breach, remedies, and termination.

Contract Types in Turkiye

The Turkish Code of Obligations recognizes different types of contracts, such as civil contracts, commercial contracts, and administrative contracts. Some contracts require special formalities, such as writing, notarization, or registration, to be valid or enforceable. For example, contracts for the sale of property, vehicle sales, marriage contracts, and promissory contracts for the future sale of property must be in writing and signed in front of a notary or a public official. Other contracts can be made orally or implicitly, unless otherwise stipulated by law or agreed by the parties.

Turkish Jurisdiction Regulates Specific Contracts

The Turkish Code of Obligations also regulates some specific contracts, such as sale and purchase, lease, loan, agency, partnership, insurance, and employment contracts. These contracts have their own rules and provisions that supplement or derogate from the general rules of contract law. The parties can also modify or exclude some of these rules by mutual agreement, unless they are mandatory or prohibited by law.

Sources of Turkish Contract Law

Contract law in Turkey is influenced by Swiss Obligations Law as well as various sources of law, such as international conventions, EU directives, case law, and doctrine. The Turkish Code of Obligations aims to harmonize Turkish contract law with the modern developments and standards of contract law in other countries and regions. However, there are still some differences and peculiarities that should be taken into account when drafting or entering into a contract in Turkey.

The Formation of Contracts

For a contract to be legally binding in Turkey, certain elements must be present. These elements include offer and acceptance, mutual consent, capacity to contract, and a lawful object. Offer and acceptance are the initial steps in forming a contract. The offer must be clear and definite, while acceptance must be unambiguous and unconditional. Both parties must have the capacity to contract, which means they must be of legal age and sound mind. The object of the contract must be lawful, and the agreement must not violate any laws or public policy.

Breach of Contract in Turkish Law

When one party fails to fulfill their obligations under a contract, it is considered a breach of contract. In Turkey, the injured party has the right to seek remedies for the breach. The remedies may include damages, specific performance, or termination of the contract. Damages may be compensatory or punitive, depending on the severity of the breach. Specific performance may be ordered by a court if monetary damages are insufficient. Termination of the contract may be an option if the breach is significant and irreparable.

Business Transactions in the Context of Contract Law

Contract law is a crucial aspect of business transactions in Turkey. The formation of contracts requires offer and acceptance, mutual consent, capacity to contract, and a lawful object. Breach of contract may result in damages, specific performance, or termination of the contract. All parties involved in a contract must abide by the terms and conditions outlined in the agreement. It is essential to seek legal advice when dealing with contracts to ensure compliance with Turkish law.

Contract Specialist Lawyer in Turkiye

The information presented in this blog post is intended to provide a basic understanding of contract law in Turkiye. However, it is important to note that this is not a comprehensive guide, and seeking legal advice is recommended when dealing with contracts. Additionally, it is essential to stay updated on any changes or updates to Turkish contract law that may affect your business practices. For this reason, we strongly recommend that you seek help from a contract specialist lawyer for a contract work in Turkiye. ISTLEGAL as an Istanbul -based law firm, we offer professional legal services in the contracts.