Breach of Contract

In this article, we will examine the contract, the terms which the legislator is looking for in order for the contract to be a valid contract, and most importantly, what consequences the parties will face if they violate the contract they have signed.

What is a Contract?

According to Article 10 of the Law on Contracts, all contracts are agreements, with the free consent of the contracting parties, for a legal duration and a legal purpose. They may be either written or oral or partly written and partly oral, or may be inferred from the conduct of the parties.

When we define the contract by taking the provision of the article into consideration, we can say the following: the contracts made between the persons who will be referred to as the ‘parties’ to the contract and have been concluded in order to produce a legal result for a legal purpose as a result of the declaration of the parties’ personal decisions, are named as legal contracts.

Types of Breach of Contract

The contractual content freely determined between the parties of the contract varies according to each type of contract. It is also useful to mention a few types of contracts before mentioning the breaches in contracts because the breaches of contracts also vary according to the type of contract.

The types of contracts may vary depending on which law the contract will take place. For example, in the context of the Labor Law and the violation of the labor contract, the sales contract is one of the typical contracts of the Contracts Law. Therefore, the contract violations also vary according to the type of contract. For example, the fact that the buyer does not pay his debt in a sales contract in the simplest manner is a violation of the sales contract while the worker who signed the employment contract works at another job in violation of the contract causes a breach of the employment contract.

In short, a breach of contract takes place if the parties do not comply with one or more of the terms of the contract they have defined within the limits of the freedom of contract. In other words, the breach of the contract takes place when one of the parties acts in violation of one or more of the regulations of the contract.

What should be done in case of violation of the contract?

If a contract is violated, the party that has suffered such a breach is entitled to compensation by the violating party as a result of a breach of the contract and naturally occurring from any loss or damage caused by the breach of the contract, which the parties know would possibly be the result of a violation of the contract at the time of the contract.

What are your remedies as a result of a breach of contract?

Penal Clause: When the contract is violated, if the amount of money in the contract is specified as the amount payable in such a violation, or if the contract contains any other terms as penalty, the party complaining of the breach of the contract shall be entitled to receive the amount of money specified in the contract, or shall be entitled to a reasonable compensation not exceeding the stipulated penalty.

Special Damages: A person who rightly terminates a contract is entitled to compensation for the damage he suffered as a result of the breach of contract. This means that, if the contract had never been signed and executed, the damage would never have been incurred upon the creditor and should be compensated by the debtor. This damage may be requested in case of termination of contract. In calculating the loss or damage arising from a breach of contract, the existing conditions are taken into account in order to remedy the problem caused by the failure to execute the contract.

General Damages: Even if there is no provision for general damages as a result of the breach of the contract in the Contracts Law, general damage scan be claimed if a violation of the contract results in a violation of the party's personal rights.

Requesting the specific performance of the contract: If a valid contract has been made in writing and signed by all parties, the Court shall order to implement the contract as it is if it considers that, after considering all circumstances and conditions, the specific performance of the contract will not be unreasonable or otherwise unlikely or practically impossible to contradict fairness or justice. However, it should also be noted that contracts for the sale of immovable property cannot be ordered by the Court as long as the limited conditions specified in the Land Sales (specific performance) Law do not exist.

Gürkan & Gürkan

Advocate and Legal Advisers