Termination of the partnership contract in Turkiye by legal means

In the beginning, it is necessary to explain what is meant by the term ordinary partnership, so we say:

Ordinary partnership contracts in Turkiye are regulated in accordance with Article 620 of the Turkish Law of Obligations, and the law states that a partnership contract is a contract in which two or more persons - real or legal - pledge to combine their work and property to achieve a common goal.

An ordinary partnership may be established for any purpose whatsoever, and the establishment of this type of partnership is not subject to any precondition.

Termination of the partnership contract in Turkiye by legal means

Moreover, the normal partnership agreement shall be terminated or canceled in the following cases, namely:

1. If the purpose in the partnership agreement has been achieved, or the achievement of this purpose becomes impossible.
2. If the contract does not provide evidence of the continuation of the partnership with the heirs, then the death of one of the partners is considered a reason for invalidating this partnership. There is no provision in the contract regarding the survival of the partnership between the heirs of the deceased and the living partners.
3. The partnership is restricted in the event of bankruptcy or liquidation of shares by a collective decision of all partners at the end of the agreed period of the partnership.

One of the partners who contribute something of the property as a shareholding is not entitled to recover that thing as it is as a result of the partnership's liquidation. Rather, he can request the value due to him according to his contribution rate after calculating the profits and losses. If this value is not set, then recovery can be made on the basis of the value of that thing at the time it was placed as a contribution margin. To solve these problems arising from the dissolution of partnerships, it is preferable to benefit from the advice of a legal expert.

1.Termination of the partnership contract by resorting to court

In the event of conflict and disagreement between the partners, Turkish law and Article 633 of the Law of Obligations ensure the organization of these issues and the resolution of some of their disputes.

It is possible to file a lawsuit to cancel the partnership against the rest of the partners in the competent court, which separates the partners in the event of a dispute.

How to file a claim?

In the absence of reasons for negotiation and reconciliation between the partners, it is useful to seek the assistance of a lawyer who is an expert in this type of case, or to seek the assistance of a competent authority for legal advice, to bring the dispute between the partners to court.

The competent court to dissolve the partnership in Turkiye

It is known that the financial issues related to the dissolution and dissolution of the partnership in Turkiye and the liquidation of the normal partnership; fall under the jurisdiction of the civil courts of the first instance, which is the General Court.

2. Termination of the partnership contract by arbitration

The concept of arbitration is of particular importance in relation to partnership disputes, particularly in mergers and separations of companies with foreign elements, shareholding agreements, and company articles of association.

The partners can also resort, in the event of a dispute, to choose an arbitration team of people with experience and knowledge and who are satisfied with the partners among them.

3. Termination of the partnership contract by mutual consent

During the termination of the normal partnership agreement, and after the partnership debts and advances made by each of the partners are paid to the partnership, the expenses paid to the partnership and the participation rates are indicated, and if there is anything left of the amount the profit is shared among the partners.

But if the remaining assets of the partnership after paying the debts, expenses, and advances are not sufficient to return the partners’ sums, the loss shall be shared among the partners equally according to the ratios specified between them.

The partners may also appoint a person to settle between them. If the partners are unable to agree on this issue among themselves, the partners can request that a person be appointed by the judge to manage the settling of the partnership, and the judge sets his wages, which are paid jointly by the partners.

How does Gars Company help in dissolving the partnership through legal methods?

With nearly ten years of experience in legal consultancy in Turkiye, and within all services related to commercial and real estate affairs, Gars Consulting, a subsidiary of Imtilak Investment Group, has been able to build itself a milestone in the field of legal services of all kinds.

Gars Consulting Company is proud of its team, which consists of the best professional team of Turkish and Arab legal professionals, who were able to leave the imprint of their success on the best image that satisfies our dear clients.

Edited by Gars Consulting Company ©

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