Obligation Law and Contract Law in Turkey: Key Aspects
Obligation Law and Contract Law in Turkey: Key Aspects
Obligation law and contract law are foundational areas in Turkish civil and commercial law, governing the rights and duties of individuals and companies involved in legal agreements. Here’s an overview of these areas and what they entail in Turkish legal context.
Obligation Law in Turkey
Obligation law, often referred to as the law of obligations, is a broad area of law that deals with the duties arising between parties, particularly in personal, commercial, and property matters. It encompasses:
- Obligations Arising from Contracts: Defines the rights and responsibilities of parties entering into a binding agreement. If one party fails to meet their obligations, they may be held liable.
- Obligations from Unjust Enrichment: Ensures that no one benefits unfairly at another’s expense. For example, if someone receives a payment by mistake, they may be required to return it.
- Obligations from Torts: Covers situations where one party’s wrongful action causes harm to another, creating a duty for the responsible party to compensate the harmed party.
Contract Law in Turkey
Contract law is a core component of obligation law and governs the formation, interpretation, and enforcement of contracts between parties. Under the Turkish Code of Obligations (Law No. 6098), contracts must meet certain requirements to be considered valid:
- Offer and Acceptance: A contract is formed when there is a clear offer from one party and an acceptance by the other.
- Legal Purpose: Contracts must have a lawful objective; agreements to engage in illegal activities are void.
- Mutual Consent: Both parties must willingly agree to the contract terms without any coercion or undue influence.
- Capacity: Parties must have the legal ability to enter into a contract, meaning they are of legal age and mentally competent.
- Form of Contract: Certain contracts in Turkey, such as real estate sales or property rentals over a certain term, must be in writing to be enforceable.
Types of Contracts Recognized in Turkey
Some of the primary contract types regulated under Turkish law include:
- Sales Contracts: Govern the sale of goods, including transfer of ownership and payment terms.
- Lease Contracts: Set out terms for renting property, with protections for both landlords and tenants.
- Employment Contracts: Define employer-employee relationships, specifying terms such as job role, wages, and duration.
- Service Contracts: Cover service provision agreements between parties, often seen in consultancy, construction, and maintenance sectors.
- Loan Agreements: Establish terms for lending and repayment, often involving collateral.
Key Legal Principles in Obligation and Contract Law
- Good Faith Principle: Turkish law requires that all parties act in good faith during contract formation and execution, encouraging fair dealing.
- Freedom of Contract: Parties generally have the freedom to determine the content of their contracts, as long as they do not violate public order or mandatory legal provisions.
- Liability for Damages: If one party breaches the contract, they may be required to compensate the other party for any resulting losses or damages.
Dispute Resolution
Contract disputes in Turkey can be resolved through:
- Mediation: A commonly encouraged approach to resolve disputes outside of court, especially in commercial matters.
- Litigation: If mediation fails, disputes may be brought to Turkish civil or commercial courts.
- Arbitration: Often stipulated in international contracts, arbitration is used as an alternative to court litigation for dispute resolution.
How Mona Law Can Help
Mona Law provides specialized legal support in obligation and contract law, helping clients draft, review, and enforce contracts in Turkey. Our experienced team ensures that contracts are compliant with Turkish law and represent clients in any disputes or negotiations related to contractual obligations. Whether you’re setting up a new agreement or seeking enforcement, we offer comprehensive assistance to secure your legal and business interests.