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QUESTIONS AND ANSWERS

Contract Law: Questions and Answers

Basic questions and explanations about key provisions in commercial contracts, termination and rescission, contractual penalties, and types of contracts.

Prepared by: Av. Umut GüneşLegal review: Av. Umut GüneşLast legal check: First published: Updated:

The questions below offer a general framework on key provisions in commercial contracts, termination and rescission, contractual penalties, and types of contracts. In a specific case, time limits, documents and the regulations in force are assessed separately.

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Why does the difference between a lease, a service contract and a contract for work matter?

What is decisive is not the name of the contract but the nature of the principal performance and the special provisions that apply.

The ongoing provision of services, the granting of a right of use, or the bringing about of a specific result are subject to different regimes of obligations and liability. Claims relating to delivery, defects, termination and fees should be assessed according to the true legal nature of the contract.

Can the price of additional work not stated in the contract be claimed?

It may be possible, depending on the type of contract, the proof of the change and the parties’ agreement.

Records of order changes, correspondence, on-site examinations, progress payments (hakediş) and acceptance by conduct are decisive. In contracts subject to a formal requirement, the validity of an unwritten change must be examined separately.

Do rescission and termination have the same legal consequences?

No; rescission and termination may have different consequences for the ending and the settlement of the contractual relationship.

Continuing obligations and obligations with one-off performance, performances already rendered, and claims for compensation and restitution are assessed separately. The article on which the act relies, the content of the notice and the date on which it reached the other party must be established.

Does signing a contract in a foreign language remove its validity?

Not by itself; however, intent, interpretation and mandatory formal requirements are examined separately.

Which language version prevails, differences in translation, the applicable law and the notice procedure should be specified in the contract. Mandatory rules in consumer or employment relationships cannot be set aside by a choice of language in the contract.

Sources and legal bases

  1. Law No. 6098, Turkish Code of Obligations
  2. Law No. 6102, Turkish Commercial Code