GENERAL RESULTS
1) SAME OBLIGATION AND DELAY COMPENSATION
A creditor who still has an interest in the performance of the debt may demand that the debtor perform the debt and compensate for any damages arising from the late performance of the debt. Unless the debtor proves that they are not at fault for the default, they are liable to compensate the creditor for any damages incurred due to the late performance of the debt. (Article 118 of the Turkish Code of Obligations)
2) LIABILITY FOR UNFORESEEN CIRCUMSTANCES
The debtor is liable for damages that may arise due to unforeseen circumstances (TCO Article 119/1). The debtor may be exempted from this liability by proving that they are not at fault for the default or that the damage would have occurred even if the debt had been paid on time (TBK Article 119/2).
CONSEQUENCES RELATED TO MONETARY OBLIGATIONS
1) DEFAULT INTEREST:
Even if the creditor has not suffered any damage, they may claim compensation for the damage caused by being deprived of the money during the period of default. Unlike compensation for delay, default interest does not require fault. In the event of default, the debtor is obligated to pay default interest regardless of whether they are at fault.
2) EXCESSIVE DAMAGES (CONTINUOUS DAMAGES):
If the creditor suffers damages exceeding the default interest, the debtor is liable to compensate for these damages unless he proves that he was not at fault (TCO Article 122/I). If the amount of damage exceeding the default interest can be determined in the ongoing lawsuit, the judge shall determine the amount of this damage when deciding on the merits of the case, upon the plaintiff’s request (TCO Article 122/II).
CONSEQUENCES FOR CONTINUOUS CONTRACTS
If the debtor defaults, the creditor may demand the same performance and default interest, may terminate the contract, and may claim compensation for damages arising from the early termination of the contract (Article 126 of the Turkish Code of Obligations).
SPECIAL PROVISIONS RELATING TO MUTUAL LIABILITY AGREEMENTS (OPTIONAL RIGHTS)
1) OBLIGATION AND DELAY COMPENSATION WITHIN THE SAME PERIOD:
If the debtor fails to fulfill the debt within the specified period or if there is no time limit, the creditor may always demand full fulfillment of the debt and compensation for damages arising from the delay. (Turkish Code of Obligations, Article 125/I).
2) REFUSAL OF PERFORMANCE AND POSITIVE DAMAGES:
The creditor may waive their right to demand immediate full performance and compensation for delay by declaring that they waive their right to claim compensation for damages resulting from non-performance. (Turkish Code of Obligations, Article 125/II)
3) TERMINATION OF THE CONTRACT AND COMPENSATION FOR NEGATIVE DAMAGES: The creditor
may withdraw from the contract. In the event of withdrawal from the contract, the parties are released from their mutual performance obligations and may demand the return of their previous performances. In this case, if the debtor cannot prove that they are not at fault, the creditor may also demand compensation for damages arising from the invalidity of the contract (TCC Art. 125/III).
• The creditor must immediately notify the debtor, within a reasonable period of time, which of the optional rights provided for in Article 125 of the Turkish Commercial Code they intend to exercise. Otherwise, the creditor may demand the same performance and compensation for delay in ordinary transactions; in fixed-term and commercial sales, unless otherwise specified, it is deemed that they have refused to perform the obligation in full and demand compensation for positive damages.