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NEWSLETTER 2013
262
Buying or Selling Commission Contracts Pursuant to the
Turkish Code of Obligations No. 6098
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Att. Ceyda Buyukoral
Buying or selling commission contracts are regulated under Articles
532-545 of the Turkish Code of Obligations No. 6098 (“TCO”).
Definition of Buying or Selling Commission Contracts
Buying or selling commission contracts are defined under Article
532 of the TCO. Pursuant to this article, a buying or selling commission
contract is a contract where the commission agent undertakes to buy or
sell negotiable instruments and movables in his name but for the account
of the principal, in return for a fee.
The provisions governing agency shall be applicable to commission
contracts, without prejudice to the provisions of the TCO regarding
commission contracts.
Duties of the Commission Agent
Article 533 of the TCO sets forth the commission agent’s duty to
inform and to insure. Pursuant to said article, the commission agent is
obliged to inform the principal regarding the transactions conducted and
in particular must notify the principal immediately when the commission
contract is performed. In principle, the commission agent is not obliged
to insure the goods on commission. However, upon instruction from the
principal, the commission agent must insure the goods on commission.
In accordance with the duty of care stipulated under Article 534 of
the TCO, where the goods for sale on commission are evidently defective,
the commission agent must safeguard the rights of recourse against the
carrier, secure evidence of the defective condition of the goods, preserve
the goods where possible and notify the principal immediately. In case
the commission agent fails to comply with these duties, he shall be held
responsible for any damage caused by such an omission. Another duty of
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Article of March 2013