Termination of the contract in Turkey: What you must know

What does termination of the contract mean?

The termination of the contract is a solution to the association that used to bring together two contracting parties, and the elimination of all the consequences thereof. With the demise of the nodal bond, there is no longer a binding contract for two parties, and its causes and types vary, which we will detail in our next article.

What are the types of contract termination in Turkey?

• Judicial termination

• Contractual termination

It is the contract in which the parties provided that the contract should be broken in accordance with considerations determined by the parties, thereby avoiding it without reference to a judicial judgment, which does not exempt the consequences of obligations arising from the breach of the agreement.

• Legal annulment

It is a contract that binds two parties to specific things. As soon as there is a defect with one of them, the obligations expire at the opposite party.

Types of contracts that can be terminated

Contracts that can be rescinded are contracts that bind two parties to certain obligations, so-called netting contracts, that is, contracts that are one-sided, such as a gift and a will, in which rescission does not occur.

Terms of termination of the contract in Turkey

A contract must be binding on two parties, so-called netting contracts.

It must be established that one of the parties breached the contract and its terms and failed to comply with the terms of the contract.

The applicant must be valid in terms of the performance of his or her obligations under the contract.

What are the effects of the termination of the contract?

The most significant effect of the avoidance of the contract was due to the lack of all the effects the contract required to create, and thus the parties to the pre-contract situation, if any, were to suffer compensation.

Frequently Asked Questions

• Is there an irrevocable contract in Turkey?

Unilateral contracts are irrevocable, such as donation contracts after execution.

• How is the contract terminated in Turkey?

It is either by judgment, by agreement between the parties, or by force of law.

• How to break a contract with a penalty clause in Turkey?

Either the termination is by mutual consent, and therefore there is no need for a penal obligation as long as the agreement was made between the two parties, or the rescinding party is bound by what he decided upon himself upon the annulment.

• When is the lease contract in Turkey terminated?

Either with the expiration of the lease term, or termination of the lease contract due to a defect in the property that prevents comfortable use of it and after the owner refuses to make repairs within a specified period, here the contract is rescinded. Also, the lease contract is terminated due to the tenant’s failure to pay the rent or the side expenses charged to him according to the lease contract.

The lessor can inform the lessee in writing of a specific deadline for payment so that he will warn him to rescind the contract if he does not pay within this period. The minimum period given to the tenant is ten days for residential real estate, and thirty days for covered workplaces (offices - laboratories - workshops...) and this period starts from the date of the day on which the tenant is notified in writing.

Edited by Gars Consulting Company

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