Agency contracts under Turkish law

Turkey is still a country with expanding markets, and alongside this growth we can see a concurrent growth of agencies which provide specialized legal services in various industries.
The Turkish Commercial Code (TCC) primarily regulates clientagency relations, but not every matter concerning such contracts are regulated under the existing law.
Now, there are some related laws which affect agency contracts, and some other matters are governed by precedents set by the supreme court. Some forms of commercial agent work deserve particular attention, and these kinds of jobs are regulated under specific laws. For example, the intermediaries in the brokerage of capital markets and financial markets are regulated under the and”Communiquandeacute of the Capital Markets Board concerning The Principles on Financial Intermediary Activities and Intermediary Institutions.and”
The TCC stipulates that one who is professionally engaged in intermediary activities regarding agreements and negotiations on behalf of a commercial enterprise — while having no position within the cited commercial entity — shall be deemed an agent under Turkish law. I must say that the definition of the law is actually a bit more complex than this, but for the purposes of the legal corner this broad definition should do.
Perhaps a further explanation will help clarify who is considered a commercial agent and who is not. Someone is deemed a commercial agent once they negotiate agreements for a commercial enterprise or a company representative, and professionally acts on behalf of that entity via a written or verbal agreement.
The most important element in determining whether someone is a commercial agent or not is that a commercial agent must act on behalf of the principal — the commercial enterprise or individual.
The agreement between the agent and the principal is not subject to any form requirement, nor is the content of the agreement. A handshake deal between the agent and the principal would suffice to establish the agreement between the parties. Proving the existence and the content of an agreement is another issue. In the event of a dispute between the agent and the principal when there is no proper written agreement, TCC provisions covering commercial agents shall apply. If the provisions fall short, the provisions of the Turkish Code of Obligations covering and”occasional intermediariesand” shall apply to the agreement.
It is best to have a written agreement which clearly states the intentions of both parties involved. A written contract should contain a termination clause. The best agreements will automatically end on a specified date or when the target of the contract is reached. A contract made for sale of a property should end when the property is sold.
In some cases the matter is more complex than this, such as an ongoing commercial activity like the selling of goods on behalf of the principal, a termination clause should exist to cover such occasions as the lack of payment for services rendered.
NOTE: Berk andcektir is a Turkish lawyer and available to answer questions regarding the legal aspects of living and doing business in Turkey. Please send inquiries to b.cektir@todayszaman.com. If a senderand’s letter is published, names may be disclosed unless otherwise expressly requested by the sender.
DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not rely solely on the information in this column.

SOURCE: Today’s Zaman