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PILOT JUDGMENT BY THE CONSTITUTIONAL COURT ON ADDITIONAL (EXCESS) DAMAGES

PILOT JUDGMENT BY THE CONSTITUTIONAL COURT ON ADDITIONAL (EXCESS) DAMAGES

In its decision dated 8 July 2025 and numbered 2024/41763, the Constitutional Court evaluated claims concerning the loss of value of receivables arising from disputes between private legal entities due to inflation, taking into account previous Court of Cassation (Yargıtay) rulings, within the scope of the right to property and the right to an effective remedy.   As a result of this assessment, the Court held that there is no effective legal remedy available regarding claims for additional (excess) damages, that Article 122 of the Turkish Code of Obligations (Law No. 6098) does not provide adequate protection against the loss of value of receivables caused by inflation, and that the existing case law has failed to offer an effective solution to this legal issue. Consequently, the Court ruled that the right to property (Article 35 of the Constitution) and the right to an effective remedy (Article 40) had been violated. This decision was published in the Official Gazette No. 33032 on 29 September 2025...

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Penalty Clause In Case The Contractor Falls Into Default On The Deliverment Of The Work (ÇEVİRİ)

Penalty Clause In Case The Contractor Falls Into Default On The Deliverment Of The Work (ÇEVİRİ)

  A penalty clause is dependent on the existence of the principal obligation, in other words, it is an accessory obligation connected to the principal obligation. This is because the penalty clause secures the principal obligation. The penalty clause can be stipulated either in the main contract or in a separate contract concluded subsequently. The penalty clause can be the payment of a sum of money or it can also involve obligations in property other than money. In accordance with Article 182/I of the TCC and the principle of freedom of contract, the parties to the contract may freely agree on the penalty clause and its amount. However, pursuant to Article 182/III of the TCC, if the judge deems the amount of the penalty clause agreed upon by the parties to be excessive, the judge shall reduce it ex officio. Conversely, Article 182/III of the TCC In accordance with Article 22, if the contractor is a merchant, a penalty clause cannot be reduced on the grounds that it is excessive. However, this rule applies if the penalty clause is detrimental to the merchant contractor and violates morality and etiquette.  ..

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APKIS optional rights (ÇEVİRİ)

APKIS optional rights (ÇEVİRİ)

ELECTIONAL RIGHTS IN THE EVENT OF THE CONTRACTOR'S DEFAULT IN THE DELIVERY OF THE WORK There is no specific provision in the TCC regarding the contractor's default in the delivery of independent sections in a construction contract in exchange for a land share. Therefore, if the contractor defaults in the delivery of independent sections, the general provisions of the TCC and, where applicable, the provisions pertaining to the work contract will apply. The institution of the debtor's default in Articles 117 and 118 of the TCC and the related provisions will apply to the contractor's default in the delivery of independent sections and the consequences thereof. In this context: For a contractor to be in default on their obligation to deliver the independent sections, the obligation must be due and payable, the independent sections must not be delivered, the landowner must have provided a warning, and there must be no reasons preventing the default. However, the contractor's default on their obligation to deliver the independent sections is not, as a rule, required to be at fault. However, justified delay may prevent the contractor from defaulting because it eliminates the delay in f..

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