115 / 516
ments and to receive payments, to renew or to decrease receivables on
principal’s behalf, such power of attorney must be given in writing.
And also the authority to conclude contracts shall be registered and
announced by the agent.
Rights and Obligations of an Agent
As indicated above, the parties are free to contractually agree on
the rights and obligation of the agent. Even if there are no contractual
arrangements, it is possible to determine the basic rights and obliga-
tions of the agencies under the provisions of the laws.
i. Obligations
Under Turkish commercial and contracts law regime, an agent is
required to:
- conduct activities relating to the business of the principal with-
in the territory. The principal is free to contractually limit such
activities to a narrower extent than as provided in the legisla-
tion. Similarly, the principal could impose sale targets on its
agents;
- respect the principal’s interests e.g. show due care in selecting
customers, monitoring the conditions of the market, etc.;
- observe the duties of loyalty and trust, which duties cover (i) the
duty to notify the principal about all issues relating to the rela-
tionship between the principal and the agent, (ii) the duty to act
in accordance with the principal’s instructions to an extent such
instructions are not against the independence of the agent, (iii)
non-compete obligation, (iv) duty of confidentiality;
- take preventive and/or protective measures in favor of the prin-
cipal when necessary
i.e.
to seek remedies such as notifications
for payment or protest, an injunctive relief, evidence considera-
tion etc., as may be required; and
- remit all relevant payments and send the necessary documents
to the principal in a timely fashion.
COMMERCIAL LAW
101