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ation of the agent during the term of the agency agreement is known as

the monopoly right of the principal. This monopoly right of the princi-

pal means that unless otherwise agreed in writing, as per the duty of

loyalty of the agent, the agent shall not act on behalf of several com-

peting commercial enterprises that are located in the same geographi-

cal area or territory. Within this framework, we see that the non-com-

pete obligation of the agent is limited with time, scope and area.

With respect to the wording of Article 104 of the TCC, various

scholars defend that “

competitors

” should be interpreted in the strictest

sense, and be understood as “

competitors active in the same commer-

cial fields of activity

2

.” In other words, an agent can act on behalf of

several commercial enterprises active in different commercial fields of

activity. The fact that agents are independent commercial auxiliaries is

one of the reasons why an agent can act on behalf of several commer-

cial enterprises. Geographical limitation is determined in accordance

with agreement between the parties. In addition, exclusivity can be

provided for a specific product or group of customer so long as it is

determined for a certain geographical area or territory.

The agent may act on behalf of competing commercial enterprises

provided that the principal gives its consent, accordingly. Written form

is a validity condition for this agreement. However, within the scope of

the agent’s obligation to protect its principal’s interests, which is one

of the of the agent’s duties of loyalty, even though the agent is allowed

to compete through an agreement, the agent should not harm the prin-

cipal’s interests

3

. In such a case, an abuse of the right to compete shall

be in question

4

. In other words, the fact that the agent is released from

a non-compete obligation by an agreement does not mean that the

agent is also released from its other legal obligations against the prin-

cipal. In any event, the agent is obliged to protect its principal’s inter-

ests.

COMMERCIAL LAW

89

2

Kaya, Arslan

; p. 42.

3

Poroy/Yasaman

, Ticari İşletme Hukuku, Vedat Yayıncılık, 2012, p. 251.

4

Kayıhan, Şaban

; Türk Hukukunda Acentelik Sözleşmesi, Seçkin Yayınları, 2011, p. 108.