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

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.

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.

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.

• 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.

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.

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

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.

• 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.

🕊️ 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.

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