Contracts are the backbone of any successful business venture. For foreign companies operating in Turkey, understanding contract law in Turkey is crucial for minimizing risks and maximizing profitability. At ER&GUN&ER Turkish Law Firm, our English-speaking Turkish lawyers provide comprehensive contract law services, ensuring that our international clients’ interests are fully protected in every agreement.
Key Elements of Contract Law in Turkey
- Offer and Acceptance: A legally binding contract requires a clear offer and unambiguous acceptance.
- Legal Capacity: Parties must have the capacity to enter into binding agreements under Turkish law.
- Subject Matter Legality: The contract must not involve activities prohibited by Turkish law.
- Form Requirements: While most contracts can be oral, real estate, leasing, and certain commercial contracts must be in writing.
- Good Faith Principle: Parties must act in good faith throughout negotiation, performance, and enforcement.
Common Contract Types Used by Foreign Companies
- Commercial agency agreements
- Distribution and supply agreements
- Joint venture and partnership agreements
- Employment contracts under Turkish Labor Law
- Real estate sales and lease agreements
- Service agreements for consultants and contractors
Common Risks in Contractual Relationships in Turkey
- Using poorly translated or unenforceable English contracts
- Missing critical legal clauses under Turkish law
- Choosing the wrong jurisdiction and governing law clauses
- Failure to notarize or register contracts when necessary
- Signing contracts without legal review by a trusted Turkish law firm
Why Work with an English-Speaking Turkish Contract Lawyer?
- Drafting bilingual contracts compliant with Turkish law
- Negotiating on behalf of foreign clients with local parties
- Advising on international dispute resolution clauses (arbitration, mediation)
- Protecting your interests through strong indemnity and penalty clauses
- Providing legal opinions on enforceability of foreign contracts in Turkey
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Frequently Asked Questions (FAQs)
- Can foreign law govern a contract in Turkey? Yes, but if the contract has strong Turkish elements, Turkish courts may still apply Turkish law principles during enforcement.
- Is a notarized contract always required? No. Only specific contracts (such as real estate transfers) must be notarized under Turkish law.
- Are English-only contracts valid in Turkey? Technically yes, but Turkish courts may require official sworn translations for legal proceedings.
- What happens if a Turkish party breaches a contract? Breach allows you to seek damages, specific performance, or contract termination through Turkish courts or arbitration centers.
- Should I include arbitration clauses in contracts? Highly recommended for international transactions to avoid jurisdiction conflicts and secure neutral dispute resolution.
- Why choose ER&GUN&ER? Because we are a leading Turkish law firm with proven experience drafting and negotiating bilingual contracts for international companies and investors.
If your company is doing business in Turkey, trust ER&GUN&ER Law Firm for reliable, bilingual, and strategic contract law services to safeguard your investments and agreements.