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66

Decision on Unification of Jurisprudence

There is a full consensus by the Court of Appeal Civil Chambers that

a late charge can be accrued if there is a written agreement between the

parties justifying the late charges or a commercial custom to this effect.

However, there was a disagreement between the Court of Appeal

Civil Chambers as to whether late charges could be accrued when there

is no written agreement between the parties, no established custom, and

no objection to the relevant invoice bearing a late charge clause within

eight days pursuant to Article 23/2 of the TCC. Thus, conflicting decisions

were given by different chambers. Therefore, the Court of Appeal Grand

Assembly decided to unify the precedents by its decision dated 27 June

2003 and numbered 2001/1 E. and 2003/1 K. Pursuant to this decision, the

following conclusions were rendered:

1.

If there is a written agreement between the parties as to

implementation of a late charge, the invoice bearing a late charge

clause would be considered a notice. The objection in time or no

objection to the late charge clause on the invoice would not have

any legal consequences, and the late charge can be accrued.

2.

If there is no clause included within the written agreement between

the parties as to a late charge requirement, the price, which is an

essential element of the agreement, cannot be altered by a unilateral

will. Therefore, even there is no objection issued within eight days

against the contents of the invoice bearing a late charge, the late

charge can not be accrued.

3.

Even if there is no agreement on the implementation of late charge,

if there is an established custom in this manner between the parties,

a late charge may be accrued provided that there is no objection to

the invoice within eight days from its receipt.

4.

If there is no written agreement or established custom between

the parties as to the implementation of a late charge, an invoice

including a late charge clause notified to the counter party and not

objected to within eight days causes the invoice to be final and does

not grant the issuing party a right to accrue a late charge.