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LEGAL GLOSSARY

Defect of intent (irade bozukluğu)

Obligations, Compensation, Consumer and Dispute Resolution

A defect of intent (irade bozukluğu) means that a party’s intent was not formed soundly when a contract was concluded, because of fundamental mistake, fraudulent misrepresentation or duress. When the statutory conditions are met, the affected party may declare that it is not bound by the contract. The statutory time limits for the declaration and for reclaiming what has been given must be monitored carefully.

Legal meaning

A mistake must be fundamental with regard to the nature of the contract, its subject matter, the identity of the other party or the facts taken as the basis; in fraudulent misrepresentation, by contrast, the mistake need not be fundamental (Articles 30-36 of the Turkish Code of Obligations, TBK). Fraudulent misrepresentation involves intentional deception by the other party or, under certain conditions, by a third party; duress involves a declaration of intent made under the threat of serious and imminent harm.

A party whose intent was defective is deemed to have ratified the contract if, within one year from the moment they learn of the mistake or fraudulent misrepresentation or from the moment the effect of the duress ceases, they do not declare that they are not bound by the contract or do not reclaim what they have given (TBK Article 39). Claims for compensation and the influence of a third party are assessed separately.

In the case of deception by a third party, it is required that the other party to the contract knew or should have known of it (TBK Article 36/2). Duress by a third party is not subject to the same rule. The ratification of a contract that is not binding because of fraudulent misrepresentation or duress does not, on its own, remove the right to compensation (TBK Article 39/2).

Core elements and practical criteria

  • Mistake, fraudulent misrepresentation and duress are the main types.
  • Not every mistake is fundamental.
  • A right of declaration within a time limit is involved.
  • The consequences for proof and compensation vary with the nature of the event.

Practical importance

Information given before the contract is signed, correspondence, advertisements, meeting records and lawfully obtained evidence of allegations of pressure should be preserved. Subsequent conduct confirming the contract may affect the exercise of the right.

Commonly confused concepts

  • In simulation (muvazaa), the parties knowingly create the apparent transaction together; in a defect of intent, one party’s intent is impaired.
  • Excessive advantage (aşırı yararlanma) rests on manifest disproportion and special conditions such as distress or inexperience.

Application example

If a sale was made by intentionally concealing the essential physical or legal characteristics of an immovable property, fraudulent misrepresentation and other liability provisions may be assessed together with the concrete evidence.

Frequently asked questions

Does every incorrect piece of information make the contract invalid?

No. The different conditions for mistake, fraudulent misrepresentation or duress, and the effect of the information on the intent to conclude the contract, are examined. In fraudulent misrepresentation, the condition of a fundamental mistake is not required.

Is there a time limit for alleging a defect of intent?

Yes. Within one year from learning of the mistake or fraudulent misrepresentation or from the end of the effect of the duress, it must be declared that the party is not bound by the contract or what was given must be reclaimed (TBK Article 39).

Sources and scope

The explanation is for general information; a specific case must be assessed separately.

Related concepts

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