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ii. Rights
Under Turkish commercial and contracts law regime, an agent is
entitled to:
- request payment of commission fees; an agent will be entitled
to commission fees only after the customer duly pays the
amount under its sales agreement with the principal;
- unless otherwise agreed under the contract, carry out activities
in a territory exclusively assigned;
- claim compensation for extraordinary costs;
- claim portfolio compensation for losing its clientele and suffer-
ing financial distress as a result of an unjust termination by the
principal or valid termination by itself; and
- if a non-compete obligation is set forth after the termination of
the agreement, claim special compensation for non-compete.
Rights and Obligations of a Principal
To avoid repetition, we simply note that the rights of the agent con-
stitute the obligations of the principal, and the obligations of the agent
constitute the rights of the principal, due to the synallagmatic nature of
agency contracts. To clarify, the principal shall inform the agent
regarding the offers that he do not accept, shall provide the documents
regarding products, shall inform the agent on the issues necessary for
him to fulfill its obligations, especially shall notify if the volume of
business will be less than expected and shall pay the necessary fees.
Authorities of an Agent and Unauthorized Representation
An agent is entitled to:
- negotiate (intermediate) and/or conclude contracts on behalf
and for the account of the principal; and on this basis, agents
can be classified in two classes being (i) agents with the author-
ity to conclude contracts on behalf and for the account of his
principal, (ii) agents without the authority to conclude contracts
on behalf and for the account of his principal;
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NEWSLETTER 2012