CONTRACT LAW IN TURKEY: IMPORTANCE OF CONTRACTS

THE IMPORTANCE OF MAKING AGREEMENT / CONTRACT

Making a contract is an agreement made to determine the obligations and responsibilities of the other party when conducting any business or transaction. Contracts can be defined as a document that regulates mutual rights and obligations between parties on a specific subject under contract law in Turkey. Contracts determine the legal relationship between parties and regulate their mutual rights and obligations. Therefore, the importance of making agreement is significant.

The importance of making agreement and contract is to clarify the agreement between the parties. By making a contract, the mutual rights and obligations of the parties are determined, and in case of any uncertainty or dispute, the contract can be used as evidence to facilitate the resolution of disputes between the parties. In addition, making a contract provides a legal basis for protecting the rights and obligations of the parties in case of any dispute.

Another importance of making agreement is to ensure that the parties’ obligations are fulfilled. Contracts regulate the mutual rights and obligations of the parties and state that both parties must fulfill their obligations under the contract law in Turkey. Therefore, making a contract enables the parties to cooperate and fulfill their obligations, ensuring the smooth running of the business.

Making a contract also helps to reduce disputes between the parties. In case of any disagreement, the contract clearly specifies the mutual rights and obligations of the parties. This facilitates the resolution of disputes between the parties and prevents a long and exhausting legal battle when it is not necessary.

Making a contract prevents the parties from being exposed to risks. Contracts minimize the potential losses of the parties in case of any uncertainties by specifying their risks and responsibilities. Additionally, making a contract is important in terms of providing legal protection to the parties in case of a dispute.

The importance of making agreement is crucial both in the business world and in daily life. The importance of making a contract lies in providing a legal basis in case of a dispute between the parties, clarifying and ensuring the fulfillment of their obligations, minimizing risks, and protecting the rights of the parties under contract law in Turkey. Therefore, it is necessary to be careful while making a contract and prepare a detailed agreement that specifies the rights and obligations of both parties.

The importance of making agreement is not only limited to the business world but also holds great significance in daily life. For instance, making a contract is essential in many situations such as renting a house, buying a car, service agreements, etc. These contracts specify the rights and obligations of the parties and make the resolution of any dispute easier while minimizing their risks.

In conclusion, the importance of making agreement and contract is significant in both the business world and daily life. Preparing a detailed contract that specifies the mutual rights and obligations of the parties enables them to collaborate and fulfill their obligations, ensuring the smooth execution of their agreements and facilitating the resolution of any disputes that may arise.

SUBJECTS COVERED BY CONTRACT LAW IN TURKEY

Contract is one of the fundamental concepts of law and is used in many different areas. The most important feature of a contract is the formation of an agreement between the parties. Through this agreement, the parties undertake mutual rights and obligations on a specific subject. Contract law in Turkey deals with the process of making, implementing, and terminating contracts.

Contract law in Turkey includes legal regulations that determine the rights and obligations of the parties. Since contracts regulate the relationship between the parties, contract law in Turkey protects the rights of the parties and provides protection against injustices. Contract law in Turkey covers many subjects. These include topics such as the sale of goods, lease agreements, employment contracts, real estate law, consumer law, commercial law, insurance law, and license agreements.

The most common examples of contracts are as follows:

• Sales Contracts: Contracts that cover agreements between the seller and the buyer. These contracts may include the sale of products, goods, or services.
• Employment Contracts: Contracts that cover agreements between the employer and the employee. These contracts may include details such as working conditions, working hours, and wages.
• Lease and Franchise Agreements: Contracts that cover agreements between the lessor and the lessee. These contracts may include the leasing of various items such as real estate, cars, and vehicles.
• Partnership Agreements: Contracts that cover agreements between business partners. These contracts regulate business partnerships and ventures.
• License Agreements: Contracts that give a person, company, or organization permission to use the intellectual property rights of another person, company, or organization. These contracts may include intellectual property rights such as patents, trademarks, copyrights, etc.
• Service Contracts: Contracts where one party promises to perform a service or job for another party. These contracts may be in various fields such as construction works, consulting services, etc.
• International Agreements: Contracts that cover agreements between different countries. These international agreements may include topics such as export, import, and international cooperation.
• Consumer Contracts: Contracts that cover agreements between consumers and sellers or service providers. These contracts regulate the conditions of the goods and services sold to consumers, warranty, and return policies.
• Real Estate Contracts: Contracts that regulate real estate buying and selling, renting, mortgage, and similar issues. These contracts may include topics such as buying, selling, renting, or using immovable properties as collateral.
• Insurance Contracts: Contracts that cover agreements between insurance companies and policyholders. These contracts regulate the terms and conditions of insurance policies, premium payments, and compensation claims.
• Banking and Financial Contracts: Contracts that cover agreements between banks, financial institutions, and customers. These contracts may include topics such as loan agreements, investment agreements, collateral agreements, etc.
• Consulting Contracts: Contracts that cover agreements between consultants or consulting firms and their clients. These contracts regulate the scope of consulting services, fees, confidentiality, and obligations.
• Supplier and Customer Contracts: Contracts that cover agreements between a supplier and a customer. These contracts regulate the conditions, prices, and payment terms of the supply of goods or services.

Please review our Business Law page to get more information about commercial agreements.

ESTABLISHMENT OF CONTRACT

It is understood that for the establishment of a contract according to contract law in Turkey, two or more parties must mutually declare their will to bring about a legal result, and these declarations of will must be compatible with each other. The establishment of the contract with mutually compatible declarations of will of the two parties takes place with the acceptance of the offer of one party by the other party.

• Offer

An offer is a statement of intent addressed to the other party, which includes the offer of one party to create a contract. The offer gives the other party the opportunity to conclude the contract and the offeror cannot prevent it.

•  Acceptance

According to contract law in Turkey; Acceptance is a statement of will directed by the addressee to the person who made the offer in response to an offer and expressing the desire to conclude the contract. Acceptance can only be made by the party to whom the offer is made. Acceptance is a legal transaction that creates innovation, since the contract will be deemed to have been concluded with acceptance.

• Compatibility of mutual declarations of will

If the opinions of the two parties are the same on whether the declarations of intent of the parties are compatible with each other, there will be clear conformity or incompatibility, and whether the contract has been established or not does not cause a conflict between them.

However, if there is a disagreement between the two parties as to whether the contract has been established; in this dispute, the conclusion will be reached with the interpretation of the declarations of will. It is accepted that the interpretation of the contract will be made within the framework of the theory of trust, both in the doctrine and in the contract law in Turkey.

TERMS OF VALIDITY OF THE CONTRACT

• The parties must be competent.

In order for the contract to be valid under contract law in Turkey, the parties must be competent to enter into that contract. The basic condition of legal action capacity for real persons is that the person making the declaration of will has the power of appeal. Legal entities are determined by the rules specific to them.

• The subject of the contract should not be contrary to the mandatory rules of law, public order, general morality and personal rights.

In accordance with the principle of freedom of contract about contract law in Turkey, the parties are free to determine the subject of the contract. However, the limits of this freedom are that the subject of the contract is not contrary to the mandatory rules of law, public order, general morality and personal rights according to contract law in Turkey. In case of violation of these limits, the contract will not be valid.

• The subject of the contract should not be impossible.

If one of the acts constituting the subject of the contract is objectively impossible at the time of conclusion of the contract, the contract is not valid. This impossibility may be a de facto impossibility or a legal impossibility.

• Mutual declarations of will must be healthy.

One of the factors that invalidate the contract is that the declarations of will are not healthy, in other words, the disability in the declarations of will. Statement that does not comply with the desire, statement for the purpose of joke, mistake, cheating are the situations that disable the statement of will.

• There should be no collusion.

According to contract law in Turkey; collusion is the agreement of the parties that the contract they make does not give rise to any provision or that the provisions of another contract than the apparent contract. Thus, although the parties seem to have made a contract against third parties, this contract does not reflect their real will. The collusion contract does not create any provision due to the collusion.

INVALIDITY OF THE CONTRACT

The invalidity of contracts covers all the deficiencies and defects in the contracts and the cases where the contracts are later ineffective.

• Absence

In the absence of mutual and compatible declarations of intent constituting the founding elements of the contract, the contract cannot be valid and there is no contract. The absence of a contract can always be asserted by anyone involved.

• Absolute Nullity

A contract that is valid because its constituent elements exist; If it does not have the validity conditions that are of importance to the public order, the contract is void. The concept of nullity in Article 20 of the Turkish Code of Obligations; It is used for invalidity where the subject of the contract is impossible or contrary to law or morality.

The reasons that necessitate the nullity of a contract, the incompetence of the person making the declaration of will, the fact that the subject of the contract is contrary to the mandatory rules of law, public order, general morality and personal rights; non-compliance with the form conditions sought for the validity of the contract and the fact that the contract is collusive.

• Cancellation Ability

In such invalidity cases, on the one hand, it is possible to make the contractual relationship valid by eliminating the disability that affects the validity of the contract, and on the other hand, it is possible to invalidate the contract definitively due to disability. Cancellation capability; to the party protected by the missing validity condition; a right of cancellation has been granted to make the disabled contract null and void.

• Lackness

If a valid contract has to be completed with one or more elements in terms of being valid, the contract is incomplete. The term “lackness” is used for this invalidity state. In case of deficiencies, the contract is suspended. Either the lackness will be corrected and the contract will be valid, or it will be clear that the lackness cannot be corrected and the contract will become null and void under contract law in Turkey.

• Partial invalidation

According to the Turkish Code of Obligations, in cases where the disability in a contract affects only a part of the contract, only that part of the contract is null and void. In order for partial invalidity to be enforced, the first condition is that the disability requiring invalidation affects only a part of the contract. If the disability affects the entire contract, partial invalidity cannot be applied.

DRAFTING OF INTERNATIONAL AGREEMENTS

International agreements are agreements between individuals and organizations operating in different countries. The preparation of such contracts is quite complex and the legal systems and cultural differences of different countries must be taken into account. In international agreements, issues such as the language of the contract, jurisdiction, dispute resolution methods and fulfillment of the contract are important. International agreements are more complex and may require the support of an expert lawyer. In contracts made in any field, it is very important to determine the rights and obligations of the parties correctly and to evaluate the legality of the provisions in the contract.

In international agreements, it is necessary to take into account the different cultural, legal and linguistic differences of the parties. For this reason, careful work should be done during the preparation of international agreements. Subjects such as the language of the contract, jurisdiction, dispute resolution methods and fulfillment of the contract are important in terms of the results that the parties expect from the contract.

In addition, the number of contracts made over the internet and the digital world is increasing day by day. The preparation of such contracts is also of particular importance. The legal validity of contracts made over the Internet and the signing of contracts are constantly updated with the development of law in the digital world.

THINGS TO CONSIDER OF MAKING A LEGALLY BINDING CONTRACT

When making a legally binding contract , some important issues to consider are:

• Identity Information of the Parties: The correct and complete identity information of the parties to the contract should be written. These details are extremely important to making a legally binding contract.
• Purpose and Subject: The purpose and subject of the contract should be clearly and explicitly stated. This way, it is clearly understood what the contract was prepared for and what it is about.
• Terms and Conditions: To making a legally binding contract; the terms and conditions contained in the contract should be stated clearly and explicitly. The rights and responsibilities of the parties should be explained in detail under contract law in Turkey.
• Date and Duration: In order to making a legally binding contract; the start and end dates of the contract should be specified. The duration of the contract and when and how the parties can terminate it should also be specified.
• Price and Payment Conditions: In order to making a legally binding contract, the price and payment conditions of the contract should be clearly specified. Details such as payment dates and payment methods should be clearly expressed.
• Conducting the Business: The contract should specify how the business will be conducted, which obligations the parties will fulfill, and the delivery time of the work.
• Cancellation and Breach Situations: Cancellation and breach situations of the contract should be clearly expressed. Details such as when and how the parties can cancel the contract, and what will be done in breach situations should be specified.
• Legal and Juridical Issues: Attention should be paid to the legal and juridical issues of the contract. Details such as the legal rights of the parties, dispute resolution methods, and court jurisdiction should be clearly specified. This clause is very important to making a legally binding contract.
• Powers of the Parties: The powers of the parties should be clearly expressed in the contract. It should be specified in which situations and under which conditions the parties can exercise their powers.
• Confidentiality and Confidential Information: The contract should clearly specify the obligations of the parties regarding confidentiality and confidential information.

Although these are the main lines of making a legally binding contract, it may be necessary to make different arrangements in the contracts according to the subject of the contract and the special conditions of the parties.

Contracts prepared by paying attention to these points can help the smooth and orderly progress of the relationship between the parties. During the contract preparation process, special conditions can also be specified according to the needs of the parties. However, in this case, attention should be paid to the validity of the contract, compliance with the law, and equal rights of the parties.

THE IMPORTANCE OF GETTING SUPPORT FROM A CONTRACT LAWYER IN TURKEY

The legal support of the contract lawyer in Turkey is very important in the making a legally binding contract. Contract lawyer in Turkey help to determine the rights and obligations of the parties correctly during the preparation of the contract. In addition, lawyers evaluate the legality of the provisions in the contract and whether they are qualified to protect the rights of the parties.

• Expertise in Legal Matters: As a lawyer is a lawyer specializing in contract law, he has the necessary knowledge and experience in legal matters in drafting the contract. Contract lawyer in Turkey can help the parties to determine the rights and obligations of the parties correctly and to evaluate their legality during the preparation of contracts.
• Prevention of Risks: Lawyers are aware of the risks that the parties may face during the preparation of contracts. Getting legal support from a contract lawyer in Turkey can help parties take steps to avoid risks.
• Assistance in Special Situations: During the preparation of contracts, the parties may have special circumstances or special needs. Special assistance provided by lawyers to the parties during the preparation of contracts can help to prepare the contract in accordance with the requirements of the parties.
• Protection of Relationships: Contracts made in the business world are extremely important in terms of protecting the relations between the parties.
• Proper use of legal terms: Contracts typically include complex legal terms and phrases. It is important for parties to fully understand the meaning of these terms and phrases and interpret them correctly. Contract lawyer in Turkey ensure that contracts are understood correctly between parties by explaining contract provisions in a way that parties can understand.
• Resolution of Disputes: The resolution of disputes that may arise between the parties during the preparation of contracts is also an important issue. Contract lawyer in Turkey can help to include provisions regarding the settlement of disputes during the preparation of the contract.

The accurate determination and application of the rights and obligations specified in contracts are crucial for the successful completion of contracts. Lawyers assist in the preparation and enforcement of contracts to protect the rights and obligations of the parties. Additionally, contract lawyer in Turkey ensure that the contract is valid and legal, and that the provisions contained in the contract comply with current laws.

As a result, contract regulation and contract law in Turkey are an indispensable part of business and commercial life. It plays an important role in resolving disputes between the parties and protecting the rights of the parties. Therefore, it is important to get the support of a contract lawyer in Turkey during the preparation of the contract and to work with a contract lawyer in Turkey who is an expert in international agreements for the preparation of the contract correctly and in accordance with the contract law in Turkey.