Contracts Law
This section covers the core institutions of the law of obligations — from contract formation to termination, from performance to adaptation. The articles are prepared in light of the Turkish Code of Obligations (No. 6098).
Breach of Contract and Damages: Positive and Negative Damages
Consequences of breach under TBK m.112-114
What damages can be claimed on breach? The distinction between positive and negative damages, proof of fault, and application of TBK m.112-114.
Breach of contract may take the form of non-performance, late performance or defective performance. Under TBK m.112, where the obligation is not performed or not performed as required, the debtor is liable for the resulting damages to the creditor unless the debtor proves that no fault can be attributed.
Presumption of Fault — TBK m.112
On breach, the presumption of fault operates against the debtor: the creditor proves only the breach and damage, not the debtor's fault. The debtor may escape liability only by proving absence of fault.
The degree of fault (intent, gross negligence, slight negligence) may affect the scope of damages. The judge takes into account the circumstances and especially the gravity of fault (TBK m.51-52). Equitable reduction is possible in slight fault; but liability for intent or gross negligence cannot be excluded in advance by contract (TBK m.115).
Positive Damages (Performance Interest)
Positive damages represent the difference between the creditor's hypothetical asset position had performance occurred and the actual position resulting from breach. In other words, the gains forgone and losses suffered because performance was not made.
Positive damages include substitutionary damages, delay damages, lost profits (lucrum cessans) and consequential damages. The creditor demands positive damages by keeping the contract alive and declaring renunciation of performance (TBK m.125/2).
Negative Damages (Reliance Interest)
Negative damages are losses the creditor would not have suffered had the contract never been concluded. They include reliance expenses (negotiation costs, notarial fees, expert reports, security costs) and other opportunities forgone because of the contract.
On rescission, the creditor may demand only negative damages (TBK m.125/3); rescission and positive damages cannot be combined. Since rescission treats the contract as never concluded, there is no theoretical basis to claim the performance interest.
Exclusion-of-Liability Agreements and Their Limits — TBK m.115
Any agreement made in advance excluding liability for the debtor's gross fault is absolutely null (TBK m.115/1). Exclusion of liability for slight fault is generally valid; but where the creditor is in the debtor's service, or where liability arises from a profession carried on under permission of law or competent authority, even slight-fault exclusion is invalid.
Exclusion clauses in standard terms are also subject to content review under TBK m.25. Provisions contrary to good faith to the detriment of the other party are invalid.
Practical Considerations
In contractual disputes, not only the signed text but also offer correspondence, revision history, invoices, delivery records, payment records, formal notices and the parties' subsequent conduct are taken into account. The formation, performance and termination of a contract often acquire meaning only through these ancillary documents.
Form requirements, authority of representation, penalty clauses, exclusion-of-liability provisions, standard terms and consumer-protection rules may all affect the validity or enforceability of a contract. In standard-form documents in particular, the other party must be informed, express acceptance obtained, and onerous provisions specifically highlighted.
Before any dispute arises, the scope of obligations, delivery date, defect notice, default notice, interest and competent-court clauses should be drafted explicitly. Vague provisions may give rise to interpretation disputes and to difficulties of proof later on.
Relevant Statutory Provisions
- TBK m.112Debtor's fault-based liability for breach
Original (Turkish, official):
MADDE 112- Borç hiç veya gereği gibi ifa edilmezse borçlu, kendisine hiçbir kusurun yüklenemeyeceğini ispat etmedikçe, alacaklının bundan doğan zararını gidermekle yükümlüdür.
English summary (non-binding):
Where the obligation is not performed or not performed as required, the debtor must compensate the creditor's resulting damage unless the debtor proves that no fault is attributable.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
- TBK m.114Measure of liability and analogous reference to tort
Original (Turkish, official):
MADDE 114- Borçlu, genel olarak her türlü kusurdan sorumludur. Borçlunun sorumluluğunun kapsamı, işin özel niteliğine göre belirlenir. İş özellikle borçlu için bir yarar sağlamıyorsa, sorumluluk daha hafif olarak değerlendirilir. Haksız fiil sorumluluğuna ilişkin hükümler, kıyas yoluyla sözleşmeye aykırılık hâllerine de uygulanır.
English summary (non-binding):
The debtor is generally liable for every kind of fault. The scope of liability is determined by the special nature of the matter; where the matter is of no particular benefit to the debtor, liability is assessed more leniently. The provisions on tort liability apply by analogy to cases of breach of contract.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
- TBK m.115Exclusion-of-liability agreement
Original (Turkish, official):
MADDE 115- Borçlunun ağır kusurundan sorumlu olmayacağına ilişkin önceden yapılan anlaşma kesin olarak hükümsüzdür. Borçlunun alacaklı ile hizmet sözleşmesinden kaynaklanan herhangi bir borç sebebiyle sorumlu olmayacağına ilişkin olarak önceden yaptığı her türlü anlaşma kesin olarak hükümsüzdür. Uzmanlığı gerektiren bir hizmet, meslek veya sanat, ancak kanun ya da yetkili makamlar tarafından verilen izinle yürütülebiliyorsa, borçlunun hafif kusurundan sorumlu olmayacağına ilişkin önceden yapılan anlaşma kesin olarak hükümsüzdür.
English summary (non-binding):
Any agreement made in advance excluding liability for the debtor's gross fault is absolutely null. Any agreement made in advance excluding the debtor's liability for any obligation arising from a service contract with the creditor is absolutely null. Where a service, profession or art requiring expertise may be carried on only under permission of law or competent authority, any prior agreement excluding the debtor's liability even for slight fault is absolutely null.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
- TBK m.116Liability for acts of auxiliary persons
Original (Turkish, official):
MADDE 116- Borçlu, borcun ifasını veya bir borç ilişkisinden doğan hakkın kullanılmasını, birlikte yaşadığı kişiler ya da yanında çalışanlar gibi yardımcılarına kanuna uygun surette bırakmış olsa bile, onların işi yürüttükleri sırada diğer tarafa verdikleri zararı gidermekle yükümlüdür. Yardımcı kişilerin fiilinden doğan sorumluluk, önceden yapılan bir anlaşmayla tamamen veya kısmen kaldırılabilir. Uzmanlığı gerektiren bir hizmet, meslek veya sanat, ancak kanun veya yetkili makamlar tarafından verilen izinle yürütülebiliyorsa, borçlunun yardımcı kişilerin fiillerinden sorumlu olmayacağına ilişkin anlaşma kesin olarak hükümsüzdür.
English summary (non-binding):
Even where the debtor has lawfully entrusted performance of an obligation or exercise of a right arising from an obligation to auxiliary persons (such as cohabitees or employees), the debtor is liable for the damage they cause the other party in the course of their work. Liability for acts of auxiliary persons may be entirely or partly excluded by prior agreement. Where a service, profession or art requiring expertise may be carried on only under permission of law or competent authority, any agreement excluding the debtor's liability for the acts of auxiliary persons is absolutely null.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
- TBK m.125Creditor's elective rights on debtor default
Original (Turkish, official):
MADDE 125- Temerrüde düşen borçlu, verilen süre içinde, borcunu ifa etmemişse veya süre verilmesini gerektirmeyen bir durum söz konusu ise alacaklı, her zaman borcun ifasını ve gecikme sebebiyle tazminat isteme hakkına sahiptir. Alacaklı, ayrıca borcun ifasından ve gecikme tazminatı isteme hakkından vazgeçtiğini hemen bildirerek, borcun ifa edilmemesinden doğan zararın giderilmesini isteyebilir veya sözleşmeden dönebilir. Sözleşmeden dönme hâlinde taraflar, karşılıklı olarak ifa yükümlülüğünden kurtulurlar ve daha önce ifa ettikleri edimleri geri isteyebilirler. Bu durumda borçlu, temerrüde düşmekte kusuru olmadığını ispat edemezse alacaklı, sözleşmenin hükümsüz kalması sebebiyle uğradığı zararın giderilmesini de isteyebilir.
English summary (non-binding):
Where the defaulting debtor has not performed in the additional period (or where no additional period is required), the creditor may at any time demand performance and delay damages. The creditor may also, by promptly declaring renunciation of performance and delay damages, demand damages for non-performance or rescind the contract. On rescission, the parties are mutually released and may demand restitution of what they have already rendered; absent proof of no fault, the debtor must also compensate the creditor for damages arising from the contract's invalidation.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
- TBK m.51Fault and circumstances in determining damages
Original (Turkish, official):
MADDE 51- Hâkim, tazminatın kapsamını ve ödenme biçimini, durumun gereğini ve özellikle kusurun ağırlığını göz önüne alarak belirler. Tazminatın irat biçiminde ödenmesine hükmedilirse, borçlu güvence göstermekle yükümlüdür.
English summary (non-binding):
The judge determines the scope and mode of payment of damages having regard to the circumstances and especially to the gravity of fault. Where payment by annuity is ordered, the debtor must provide security.
Source: mevzuat.gov.tr · last reviewed: 2026-05-12
The statutory provisions are reproduced for information purposes only. The current and official text on mevzuat.gov.tr is authoritative.
Conclusion
Correctly identifying the type of damage to be claimed often decides the outcome of an action for breach. Bearing in mind that positive and negative damages cannot be claimed together, the choice between rescission and positive damages must be made consciously, and the petition drafted accordingly.
This article is for information purposes only and does not constitute legal advice. If you would like professional assistance on a specific matter, you may request a consultation.
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