Understanding the legal implications of a breach of contract in Turkey is crucial for parties involved in any contractual agreement under the Turkish jurisdiction. This article provides an in-depth examination of this complex legal area, focusing on remedies for breach of construction contracts.
I. Legal Framework of Breach of Contracts in Turkey
A. Turkish Code of Obligations
The Turkish Code of Obligations Law No. 6098, enacted in July 2012, provides the primary legal framework for contractual breaches1. This updated code replaced the previous Code of Obligations Law No. 818.
B. Key Articles
1. Article 112 of Turkish Code of Obligations Law
This article stipulates that a defaulting party in a contract is liable to compensate the other party’s losses arising from deficient performance or non-performance, unless they can prove their lack of fault.
2. Article 113 of Turkish Code of Obligations Law
Article 113 provides that if an obligation to perform has not been met, the non-defaulting party may seek court approval to have the obligation fulfilled by someone else at the defaulting party’s expense.
C. Construction Contracts Specifics
1. Article 473 of Turkish Code of Obligations Law
This article, specific to construction contracts, allows the employer to correct defects or non-compliance themselves or recruit a third party to do it at the contractor’s expense if the contractor defaults.
II. Termination Options and Their Implications
A. Available Remedies
Article 125 of the New Code of Obligations provides three options for a non-defaulting party when the other party defaults on a contract.
- Performance and Damages: The non-defaulting party can seek performance of the obligation and related delay damages.
- Non-Performance and Damages: They can seek compensation for damages arising from non-performance of the obligation.
- Rescission: They can opt to rescind the contract.
B. Termination, Rescission, and Resulting Damages
1. Positive Damages
Positive damages aim to place the non-defaulting party in the position they would have been in if the contract had been properly performed.
2. Negative Damages
In the event of rescission, the non-defaulting party can seek negative damages, which aim to put them in the position they would have been in if the contract had never been formed.
III. Complexities in Construction Contracts
A. Instantaneous Contract Categorization
Construction contracts are generally not considered to be of a continuous nature, but are deemed “instantaneous contracts”. This classification means that Article 126 of the New Code of Obligations, which allows termination and positive damages in continuous contracts, does not apply to construction contracts.
Contract Lawyer in Turkey
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The Significance of English-Speaking Attorneys in Istanbul The intricacies of an unfamiliar legal system can be formidable, especially in the face of language barriers. This underscores the indispensable role played by English-speaking attorneys in Istanbul. Given that English serves as the universal language of commerce, the presence of an attorney proficient in effective English communication is paramount for foreign enterprises and investors operating in Turkey.
Our attorneys are not only fluent in English but also possess an in-depth comprehension of Turkish legislation and statutes. They function as a bridge over the communication divide, ensuring that clients have a comprehensive grasp of their legal entitlements, obligations, and alternatives. This level of comprehension is pivotal for making well-informed choices, circumventing legal predicaments, and attaining successful outcomes in legal proceedings.
In addition to these offerings, we specialize in managing instances of Breach of Contract in Turkey and compensation lawsuits in Istanbul. Our team is armed with the requisite knowledge and experience to navigate these intricate scenarios, thereby furnishing our clients with unparalleled legal advocacy.
B. Impossibility without Fault Jurisprudence
Legal theory has developed the concept of “impossibility to perform without fault” based on Article 136 of the New Code of Obligations, which provides that positive damages should be awarded to the non-breaching party when the breaching party of the Breach of Contract in Turkey effectively abandons the performance of the contract.
IV. Conclusion
The complexities of Breach of Contract in Turkey, particularly in the realm of construction contracts, necessitate a robust understanding of the Turkish legal framework. A re-evaluation of the classification of construction contracts, along with careful drafting of contracts and termination provisions, is essential in navigating this complex area of Turkish law.
Termination and its remedies are key building blocks of contract law, but they are complicated in Turkish legal theory, especially in construction contracts. Therefore, it’s crucial to have a comprehensive understanding of breach of contract according to Turkish law.
At Han & Partners Law Firm, we are committed to providing exceptional legal services and assisting clients in navigating the complexities of contract law in Turkey. If you are facing a contract breach or need assistance with termination or compensation lawsuits, our experienced team is ready to help. Contact us today to schedule a consultation and discuss your legal needs.
