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NEWSLETTER 2011

228

The “Simulation” Concept in the New Code of Obligations

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Att. Özgür Kocabaşoğlu

The simulation is stipulated in article 19 of the new Turkish Code of

Obligations (“NTCOO”) numbered 6098 which shall come into force on

01.07.2012. The stipulation in the NTCOO mentioned below is similar

to the provision in article 18 of the Turkish Code of Obligations (TCOO)

numbered 818.

D. Interpretation of contracts, simulation

In deciding the type or terms of a contract, the true intention and

mutual assent of the parties should be taken into consideration,

disregarding any expression which may have been used either by

mistake or so as to disguise true intention of the parties.

A person who is bound by the terms and conditions of a contract

and obligations stated therein, cannot assert simulation as a

defence against a third party who relies his claim on such an

acknowledgement.”

The article 19 of NTCOO stipulates the interpretation principle of the

contracts and the case where the simulation or collision cannot be plead

as a defence. The heading of the article is different than the article 18 of

TCOOwhere the new heading is mentioning transactions with simulation.

Simulation is an exceptionally discussed issue both in the Turkish Law

doctrine and practice whereas no other provision exists in the laws other

than article 18 of TCOO.

Simulated Transactions

Two kinds of simulated transactions are accepted under Turkish

Law doctrine; “absolute simulation” and “relative simulation”. Absolute

simulation means, an agreement made between the contracting parties

in order to deceive third persons to gain any benefit as if there was a

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Article of September 2011