Contract LawContract Breach and Compensation in Turkish Law

In Turkish law, contract breaches can occur when one party fails to fulfill their obligations according to the terms and conditions of a contract. When a breach occurs, it is important to understand the legal remedies available to the non-breaching party. This guide will provide an overview of contract breaches, termination of contracts, and compensation lawsuits in Turkey, highlighting the relevant laws and procedures.

At İstanbul Law Office, we specialize in contract law and have extensive experience in handling contract breach cases. Our team of skilled lawyers is committed to providing exceptional legal services and ensuring client satisfaction. If you require legal assistance in dealing with a contract breach, termination, or compensation lawsuit in Turkey, we are here to help. Contact us today to discuss your case.

I. Contract Breach in Turkish Law

A contract breach occurs when one party fails to perform their obligations as stated in the contract. Under Turkish law, the defaulting party is liable to compensate the non-breaching party for any losses resulting from the breach, unless they can prove that they are not at fault.

The Turkish Code of Obligations, specifically Article 112 of the New Code of Obligations (Article 96 of the Old Code of Obligations), establishes the principle of liability for defaulting parties. This article states that if an obligor does not fulfill their obligations or fails to perform at all, they are obligated to compensate the obligee for any losses arising from the deficient performance or non-performance, unless they can prove their lack of fault.

II. Termination of Contract in Turkish Law

In Turkish law, the non-breaching party has the right to terminate the contract in the event of a breach by the other party. The termination of a contract releases both parties from their obligations and allows the non-breaching party to seek damages resulting from the ineffectiveness of the contract.

A. Termination of Construction Contracts

Specific to construction contracts, Article 473 of the New Code of Obligations (Article 358 of the Old Code of Obligations) provides provisions for termination. If it becomes clear during the construction process that the contractor’s default will result in defective or non-compliant construction, the employer has the right to give the contractor a reasonable period to rectify the defect or non-compliance. If the contractor fails to cure the issue within the given period, the employer can then correct the defect themselves or hire a third party to do so at the contractor’s expense.

Furthermore, the first paragraph of Article 473 allows the employer to rescind the contract without waiting for necessary deadlines if the contractor fails to start the work on time or causes delays in breach of the contract. Rescission entitles the employer to seek negative damages, effectively releasing them from any further obligations under the contract.

B. Termination of Instantaneous Contracts

For contracts categorized as “instantaneous contracts” (i.e., contracts that are not continuous in nature), the non-breaching party can choose to terminate the contract based on Article 125 of the New Code of Obligations. This article provides three options for the non-breaching party:

  1. The non-breaching party can demand delayed performance of the obligation and seek delay damages if the defaulting party has not fulfilled their obligation within a cure period or if no cure period is required.
  2. The non-breaching party, after promptly stating their intent to give up the right to delayed performance, can seek compensation for damages resulting from the non-performance of the obligation.
  3. The non-breaching party can choose to rescind the contract, relieving both parties of their obligations under the contract. Rescission typically leads to negative damages, but in certain circumstances, positive damages may also be sought (as explained in the next section).

Contract Lawyer in İstanbul and Specialized in Contract

At İstanbul Law Office, we are committed to simplifying the complexities of legal processes for our clients. We offer a comprehensive suite of legal services tailored to your unique needs. Our team of lawyers is well-versed in various legal fields, including commercial law, immigration law, family law, and criminal law. We strive to secure the most favorable outcomes for our clients by dedicating our efforts and expertise to their cases.

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Our lawyers are not only fluent in English but also have a profound understanding of Turkish laws and regulations. They can bridge the communication gap, ensuring that clients fully understand their legal rights, responsibilities, and options. This understanding is key to making informed decisions, steering clear of legal issues, and achieving successful outcomes in legal matters.

In addition to these services, we also specialize in handling contract breaches and compensation lawsuits in Istanbul. Our team is equipped with the knowledge and experience to navigate these complex cases, providing our clients with the best possible legal representation.

III. Compensation Lawsuits in Turkish Law

When a contract breach occurs, the non-breaching party has the right to seek compensation for any losses suffered as a result. Compensation lawsuits can be filed to recover both material and moral damages.

Material compensation lawsuits are typically related to violations of property rights, such as damages to property, incapacity to work, loss of interest due to death, or disability. The Civil Courts of First Instance in Turkey hear these cases, regardless of the compensation amount. The court may decide to award monetary compensation or transfer of property as a remedy for the pecuniary damages.

On the other hand, non-pecuniary compensation lawsuits are filed when there is a violation of personal rights, resulting in damages such as stress, sadness, or wear and tear due to unlawful actions or transactions. In these cases, the court may order the payment of monetary compensation to eliminate the damage caused to the individual.

IV. Filing a Compensation Lawsuit in Turkish Law

To file a compensation lawsuit in Turkish law, certain conditions must be met. For non-pecuniary damage claims, the Turkish Code of Obligations sets out specific conditions, including damage to bodily integrity, serious bodily injury, or wrongful acts causing death. If these conditions are met, a lawsuit can be filed to seek compensation for non-pecuniary damages.

In Turkish law, the Code of Obligations requires a Turkish citizen to deposit a security before filing a lawsuit. However, this requirement may not apply to non-Turkish citizens. It is important to consult with a legal expert to understand the specific requirements and procedures for filing a compensation lawsuit.

At İstanbul Law Office, we have a deep understanding of Turkish law and extensive experience in handling compensation lawsuits. Our expert team is dedicated to providing the best legal support for compensation claims related to property or personal values. If you need detailed information or assistance with any legal issues, please contact us.


Understanding contract breaches, termination of contracts, and compensation lawsuits in Turkish law is essential when dealing with legal disputes. Contract breaches can have significant consequences, but with the right legal guidance, you can protect your rights and seek appropriate remedies.

At İstanbul Law Office, we are committed to providing exceptional legal services and assisting clients in navigating the complexities of contract law in Turkey. If you are facing a contract breach or need assistance with termination or compensation lawsuits, our experienced team is ready to help. Contact us today to schedule a consultation and discuss your legal needs.