Commercial Receivables, Invoices and Negotiable Instruments

Commercial Receivables, Current Accounts and Debts Between Companies

In claims between merchants or commercial enterprises, special provisions may come into play regarding the presumption of a commercial transaction, commercial books, objection to an invoice, default, interest, mediation as a condition precedent to litigation and the court with subject-matter jurisdiction.

• Commercial receivables arising from the supply of goods and services
• Current account and open account relationships
• Dealership, distributorship, agency and franchise receivables
• Disputes over commission, premiums, turnover differences and discounts
• Lending between companies and transactions between group companies
• Shareholder current accounts and payments made to shareholders
• Examination of commercial books and electronic records
• Account reconciliation, balance confirmation and confirmation of receivables
• The consequences of late payment in the supply of goods and services
• Commercial default interest and collection costs
• Mandatory mediation, the commercial court and arbitration options

The structure of the commercial relationship can be addressed together with the practice areas of Commercial Law and Disputes and Company Law.

Claims Arising from Negotiable Instruments

Checks, promissory notes and bills of exchange differ from other claim documents in their formal requirements, time limits for recourse and enforcement routes. Even if an instrument loses its character as a negotiable instrument (kambiyo vasfı), it may still be assessed separately in terms of the underlying relationship or as written evidence.

• Examination of the formal requirements of the check, promissory note and bill of exchange
• Payee, endorser, drawer, issuer, avalist and other liable parties
• Examination of endorsement, delivery and the legitimate holder
• Due date, presentment, protest and rights of recourse
• Allegations of lack of consideration, payment, forgery or unauthorized signature
• The allegation that the instrument was given as security
• The relationship between the instrument and the underlying contract
• Enforcement on negotiable instruments (kambiyo takibi)
• Actions for a negative declaratory judgment, recovery of payment and requests to stop the enforcement proceedings
• The statute of limitations and the consequences of losing the character of a negotiable instrument

Enforcement and attachment proceedings through negotiable instruments are also carried out together with the practice area of Enforcement and Insolvency.

Keep the Invoice and the Delivery Separate

The invoice is assessed together with the underlying relationship and the performance documents. An invoice that has not been objected to does not, by itself, prove in every dispute that delivery was complete or that all contract terms were accepted. Delivery notes, acceptance, work orders and payment records are important.

An open account is not the same as a current account

Tracking transactions in a single account in accounting does not, on its own, show that there is a current account contract within the meaning of the Turkish Commercial Code. The nature of the account relationship, the reconciliations and the contract terms must be determined.