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Agency without Authority
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Att. Pelin Baydar
Agency without authority is regulated under section 10 of the
Turkish Code of Obligations No. 6098 (“TCO”) between Articles 526-
531, entitled
“the rights and obligations of the agent”
and
“the rights
and obligations of the principal”
.
In General
The aspects of agency without authority are as follows:
1) The Conduct of business: Agency without authority is defined
as the conducting of a business. It is not mandatory that the
conduct of the business be a legal transaction.
2) The Business of another person: The agent is legally conduct-
ing the business of another person (the principal).
3) Lack of authority: The agent does not have the authority to
enter into commitments.
4) The will to conduct business: It is not obligatory that the agent
bears the will to conduct business in the principal’s interest or
that the agent’s activities are carried out with the knowledge of
the person owning the business. It is sufficient that the agent
has in general the will to conduct business; in other words the
agent’s will is aimed at the conduct of business.
The Rights and Obligations of the Agent
Conduct of Business
According to Article 526 of the TCO, the person who conducts
the business of another without authorization is obliged to do so in
accordance with the other’s best interests and presumed intentions in
mind.
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NEWSLETTER 2012
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Article of December 2012