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Enforcing Commercial Contracts in Turkey under the Code of Obligations (2025 Guide)

Introduction

Entering into a business contract in Turkey? Whether you're supplying goods, licensing technology, or providing services — the Turkish Code of Obligations (TCO) governs the terms, execution, and legal remedies.

For European companies, enforcing a contract in Turkey requires understanding both civil law principles and practical enforcement mechanisms — in Turkish jurisdiction, language, and procedure.

At RT-Union – Turkish International Law & Consulting Firm, we help EU and UK companies draft, assess, and enforce commercial agreements in Turkey with confidence.

Legal Framework: The Turkish Code of Obligations

The primary law regulating contracts in Turkey is the Turkish Code of Obligations (Law No. 6098), which entered into force on 1 July 2012.

It covers:
  • Formation and validity of contracts
  • Performance and breach
  • Damages and liability
  • Termination and force majeure
  • Specific contract types (sale, lease, agency, service)

Contracts governed by Turkish law are interpreted based on good faith, mutual obligation, and purpose of the agreement — not just its literal wording.

Are Foreign Companies Protected Under Turkish Contract Law?

Yes. The Code applies equally to Turkish and foreign parties. However:

  • Contracts may be subject to mandatory Turkish provisions (e.g. consumer law, real estate regulations)
  • Language of the contract matters — Turkish courts will rely on Turkish versions in litigation
  • International arbitration clauses are respected, but must be properly drafted

RT-Union helps ensure that your contract is enforceable in Turkish court if needed.

Key Risk Points in Turkish Contracts

  • Risk: No penalty clause
Description: Turkish law limits enforceability of excessive penalties

  1. Risk: Ambiguous delivery/payment terms
Description: Leads to interpretation issues in court

  • Risk: Jurisdiction not specified
Description: May cause forum shopping or delay

  • Risk: No default interest provision
Description: TCO applies statutory rates if silent

  • Risk: Notarization required (in some cases)
Description: Real estate and guarantees may need formalities
📌 RT-Union provides contract review and localization to avoid costly disputes.

How to Enforce a Contract in Turkey (Step-by-Step)

1. Attempt Amicable Resolution
  • Often expected before litigation
  • A formal notice (via notary or email) strengthens legal position

2. File a Lawsuit in Commercial Court
  • Jurisdiction based on:
  • Turkish party’s location
  • Place of contract performance
  • Agreed forum in contract

3. Court Procedure
  • Written submissions in Turkish
  • Hearings and expert review (for technical contracts)
  • Judgment issued in 6–18 months (on average)

4. Appeal or Execution
  • Judgment becomes enforceable after finalization or upon interim execution
  • RT-Union initiates enforcement via İcra Office (bailiffs)

Can You Enforce a Foreign Contract in Turkey?

Yes — if the foreign contract:
  • Does not contradict public order
  • Has proper choice of law and jurisdiction clauses
  • Is translated and certified properly

Turkish courts recognize foreign contracts — but enforcement depends on form, proof of delivery, and performance terms.

Case Example: French Tech Distributor Enforces Payment Clause

RT-Union represented a French company in enforcing a €120,000 payment clause against a Turkish distributor. The original agreement:
  • Was bilingual (English–Turkish)
  • Contained a clear jurisdiction clause (Istanbul courts)
  • Included penalties and interest provisions

Result:
  • Judgment issued in 8 months
  • Enforcement via bank account seizure
  • Full recovery, including legal costs

Frequently Asked Questions

Does Turkish law require contracts to be in Turkish?
No — but in disputes, Turkish courts will rely on Turkish versions. RT-Union prepares dual-language contracts with legal priority clauses.

Can we include arbitration in our contract?
Yes — ICC, ISTAC, and ad hoc arbitration clauses are accepted. RT-Union helps draft enforceable arbitration terms.

What if the Turkish partner refuses to pay?
We initiate litigation and freeze assets through court-authorized enforcement. Penalties and interest may apply.

Can I recover legal costs?
Yes — prevailing parties may recover part of the costs, subject to Turkish procedural rules.

Why Work with RT-Union – Russian-Turkish Law & Consulting Firm

  • We draft and adapt contracts under Turkish law
  • We litigate and enforce contracts across Turkey
  • We protect your interests in English, German, Russian, Turkish
  • Offices and representation in Istanbul, Ankara, Izmir

We are not just lawyers — we are your long-term legal partner in Turkey.

Contact Us for Contract Review or Enforcement

🕊️ Need to enforce a contract or resolve a dispute in Turkey?

Let RT-Union secure your commercial rights — clearly, efficiently, and locally.

📞 Free contract audit or enforcement strategy call.

👉 Get Legal Contract Support →