With the rise of the Internet, companies can now conduct their businesses in an electronic environment. With this, a new concept came to the fore: electronic contracts. In this article, our Istanbul lawyer firm explores all the details of electronic contracts in Turkey.
Legal Framework of Electronic Contracts in Turkey
Several laws, rules, and organizations influence the legal framework governing electronic contracts in Turkey. Their main objective is to ensure these contracts are enforceable by law while giving customers extra rights. Below is a more detailed explanation of a few of them.
- E-Commerce Law: The Law on the Regulation of Electronic Commerce (Law No. 6563) is the main legislation that governs electronic contracts in Turkey. According to e-commerce law, if both parties agree to use electronic means and the contract meets all legal conditions, they are considered valid under Turkish law.
- Code of Obligations: This establishes general guidelines and norms for all kinds of contracts, including electronic ones.
- Regulation on Distance Contracts: Enables consumers to withdraw from contracts and obtain product and service information.
- Regulation on Service Providers and Intermediary Service Providers: Requires service providers to set up procedures for managing customer complaints and disputes resulting from electronic transactions.
Differences Between Electronic Contracts & Smart Contracts
Electronic contracts are concluded by the parties using electronic communication, usually via the Internet. In contrast, smart contracts automatically execute the terms of the agreement without human intervention.
Electronic contracts in Turkey can be documented in written form; however, smart contracts rely on computer code stored on distributed ledgers. Additionally, human intervention may be needed for electronic contracts, but smart contracts operate without human action.
For legal assistance related to contracts, consult our Turkish law firm, ER&GUN&ER. Our Istanbul lawyers are experienced in handling complex business and commercial cases, offering tailored services for your specific needs.
Key Components of Electronic Contracts in Turkey
Unlike traditional contracts, electronic contracts are legal agreements created electronically. Security and validity are ensured through encryption, electronic signatures, and other authentication techniques. Key components include data protection and privacy, consent, acceptance, and legal capacity.
Forming Contracts
Electronic contracts in Turkey are formed through electronic exchange of proposals and acceptance, guided by the Turkish Civil Code and the Code of Obligations. The Law on the Regulation of Electronic Commerce and Consumer Protection Law further regulate contract formation. According to the Consumer Protection Law, customers can cancel electronic contracts within 15 days of receiving goods or services.
Selecting Appropriate Legal Jurisdiction
According to Law No. 5718 on International Private and Procedural Law, parties are free to select the governing law for electronic contracts in Turkey. However, foreign laws conflicting with Turkish public policy or directly applicable Turkish regulations may take precedence.
Language Considerations in Contractual Agreements
The contract language should be clear, transparent, and understandable to all parties involved, ensuring mutual comprehension and consent.
Utilizing Digital Signatures
Digital signatures significantly enhance the validity and reliability of electronic contracts in Turkey. Under Turkish law, digital signatures hold the same legal validity as handwritten signatures.
Strategies for Retaining Contract Data
Data retention is crucial in electronic contracting. The Turkish Ministry of Trade can request electronic logs of e-commerce transactions from service providers and intermediaries for up to three years from the transaction date.
For comprehensive legal guidance on electronic contracts, trust our experienced Istanbul lawyer firm, ER&GUN&ER. Our skilled attorneys are ready to support your business with expert legal advice and representation.
You can reach our previous article from Regulation of Financial Leasing in Turkey.