In General A contract of work is a controversial contract. The contractor does the work for a certain price in which the work owner has promised. The work owner’s prime debt is to pay this price ( Borçlar Kanunu (Code of obligation- hereafter will be referred to as BK) Art. 364-365). If the parties have...

In Turkish law companies are divided into two as capital companies and private companies. Joint stock companies are capital companies and constitute the most appropriate and flexible structure for gaining real and legal entities savings into the economy. In joint stock companies, the company’s management, inspection and representation is executed by the management and inspection...

In Turkish law amongst bill of exchanges, check is the one which is most widely used. Because of this importance in this month’s bulletin we think that it will be beneficial to look into the mandatory, voluntary and alternative components needed to be found in a check in the light of the Courts of Appeal...

In Turkish law consensual divorce is regulated in third paragraph of the article 166 of the Civil Code (Türk Medeni Kanunu- hereafter will be referred to as TMK). According to the law it is possible consensually divorce when the spouses apply for divorce together or when one spouse accepts the divorce suit opened by the...

In this month’s bulletin we are going to cover how the capital stock may be increased with a decision of the general assembly and in what kind of situations these decisions will be invalid for joint stock companies in which we come across in key sectors that bring a large amount of capital such as...

In this newsletter we discuss issues on conditions required for a valid assignment of claims, whether an approval of the debtor is necessary in the transaction and assignment of future claims. The provisions on Transfer of claims are stipulated in articles between 162 and 172 of the Code of Obligation (hereafter will be referred to...

In this bulletin we are going to cover the free zones which not only arouses interest in local investors but also foreign investors too. The free zones are regulated with the Free Zones Act, The Free Zones Implementing Regulation, The Establishment, Duty, Authority and the Working Basis for the Free Zone Managements, the Decision about...

In our bulletin we will investigate conditions of validity and termination of promise to sell of real property which is often applicable in practice. The promise to sell is a preliminary contract providing claim rights to conclude of a real property sales contract. By the preliminary contract parties express their wills to conclude the principal...

Nowadays it is possible to come across that almost all contracts contain penal clauses. The matter of penal clause has a critical importance especially if parties would like to cancel the contact as a result of the economic crises. Besides, the situation is often seen that usually parties have been agreed on excessive penal clauses....

The right of cancellation and stop payment of cheques should only be exercised by a drawer and it was regulated in the section of payment and avoidance payment in the Commercial Code (hereinafter it will be referred to as CC). In recent years, action of cancellation and stop payment of cheques are frequently applied in...