Invalidity/ Unenforceability of the Agreement

EG
ELIG Gürkaynak Attorneys-at-Law
Contributor
ELIG Gürkaynak Attorneys-at-Law is an eminent, independent Turkish law firm based in Istanbul. The firm was founded in 2005. ELIG Gürkaynak is committed to providing its clients with high-quality legal services. We combine a solid knowledge of Turkish law with a business-minded approach to develop legal solutions that meet the ever-changing needs of our clients in their international and domestic operations. Our legal team consists of 90 lawyers. We take pride in being able to assist our clients in all fields of law. Our areas of expertise particularly include competition law, corporate law, M&A, contracts law, white collar irregularities and compliance, data protection and cybersecurity law, litigation and dispute resolution, Internet law, technology, media and telecommunications law, intellectual property law, administrative law, real estate law, anti-dumping law, pharma and healthcare regulatory, employment law, and banking and finance law.
Agreements and decisions of trade associations that infringe Article 4 of the Law No. 4054 on the Protection of Competition (“Competition Law”) are invalid and unenforceable with all their consequences (Article 56 of Competition Law).
Turkey Competition and Antitrust
To print this article, all you need is to be registered or login on Mondaq.com.

Agreements and decisions of trade associations that infringe Article 4 of the Law No. 4054 on the Protection of Competition ("Competition Law") are invalid and unenforceable with all their consequences (Article 56 of Competition Law). Article 4 of Competition Law prohibits agreements, concerted practices and decisions that restrict competition.

The parties to a restrictive agreement cannot enforce their contractual rights before Turkish courts, since agreements that violate the law are invalid (Article 27 of the Turkish Code of Obligations). Courts are required to ex officio look into whether the agreement is invalid and unenforceable. A party that has already fulfilled its obligations under the restrictive agreement can seek a relief from the court to reclaim the performance.

Not all types of Article 4 violations invalidate the whole agreement. Severable provisions such as non-compete clauses in block-exempted vertical agreements would not render the entire agreement invalid, to the extent they can be severed from the rest of the agreement. However, agreements which per se aim to violate competition law such as cartel agreements would be invalid in their entirety.

The relevant legislation does not make a reference to Article 6 of Competition Law, which prohibits abuses of dominant position. The issue of whether the 'null and void' status applicable to agreements that fall foul of Article 4 may be interpreted to additionally cover contracts entered into by infringing dominant companies is a matter of ongoing controversy. However, contracts that give way to or serve as a vehicle for an abusive contract may be deemed invalid and unenforceable because of violation of Article 6 of Competition Law.

Invalidity/ Unenforceability of the Agreement

Turkey Competition and Antitrust
Contributor
ELIG Gürkaynak Attorneys-at-Law is an eminent, independent Turkish law firm based in Istanbul. The firm was founded in 2005. ELIG Gürkaynak is committed to providing its clients with high-quality legal services. We combine a solid knowledge of Turkish law with a business-minded approach to develop legal solutions that meet the ever-changing needs of our clients in their international and domestic operations. Our legal team consists of 90 lawyers. We take pride in being able to assist our clients in all fields of law. Our areas of expertise particularly include competition law, corporate law, M&A, contracts law, white collar irregularities and compliance, data protection and cybersecurity law, litigation and dispute resolution, Internet law, technology, media and telecommunications law, intellectual property law, administrative law, real estate law, anti-dumping law, pharma and healthcare regulatory, employment law, and banking and finance law.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More