PRACTICE AREAS
Contract Law
What is Contract Law?
Contract law is the branch of law that regulates the formation, validity, provisions, performance, termination, and legal consequences of breaches of contracts established between individuals or legal entities. From simple daily purchases to large commercial agreements, many transactions fall within the scope of contract law.
The Turkish Code of Obligations determines the basic legal framework for contracts. The aim in this field is to secure the agreements made by the free will of the parties, to ensure justice between them, and to prevent potential disputes.
Elements of a Contract
For a contract to be valid, certain basic elements must be present:
- Legal Capacity of the Parties: The individuals entering into the contract must have the capacity to act.
- Mutual and Consistent Declarations of Intent: The parties must declare their intentions in a way that is consistent with each other.
- Definite and Lawful Subject Matter: The subject of the contract must be legal, ethical, and understandable.
- Form Requirement: Unless otherwise stated by law, contracts are subject to freedom of form, although formal requirements may apply in some cases.
Types of Contracts
Contracts are categorized based on their content and subject matter. Common types of contracts include:
- Sales Contract: The transfer of goods or services in exchange for payment.
- Lease Agreement: Granting the right to use a specific property in return for payment.
- Service Contract: A person undertakes to perform a service.
- Work Contract: A contract made for the creation of a specific work or product.
- Commercial Contracts: Complex agreements such as dealership, franchise, and supply contracts made between companies.
Breach of Contract and Legal Consequences
If one of the parties violates the terms of the contract, the other party may resort to the following legal remedies:
- Performance Claim: Requesting fulfillment of the contractual obligation.
- Compensation Claim: Demanding compensation for material or moral damages.
- Termination of the Contract: Especially in cases of serious breaches, the contract may be ended.
- Right of Withdrawal: In consumer transactions, the right to withdraw from the contract within a certain period.
What to Consider When Drafting a Contract
When drafting contracts, it is crucial to clearly, understandably, and explicitly define the rights and obligations of the parties. Vague expressions may lead to future disputes. The following elements must also be considered:
- Penalty clauses and sanctions
- Default conditions and timeframes
- Force majeure clauses
- Jurisdiction and dispute resolution methods
Getting support from a legal expert to prepare contracts in a lawful and effective manner helps prevent potential legal risks in the future.
Conclusion
Contract law is a frequently encountered legal area in both personal and corporate life. Well-structured and professionally prepared contracts strengthen trust between parties, prevent loss of rights, and contribute to the easier resolution of disputes. You can contact us for all types of consultancy services related to contracts.