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Scope of Application
Subject of the non-competition agreement is the limitation of the
agent’s activities with a non-compete obligation for the agent. The
wording of the relevant article refers to “
restricting the activities of the
agent after the termination of agency agreement.
” Therefore, scope of
the non-compete obligation is determined in accordance with the
agent’s activities conducted for the principal
8
. Thus, the scope of the
non-compete obligation shall be determined primarily according to the
provisions of the agency agreement. However, the expression, “
activi-
ties of the agent
” shall be strictly interpreted, and the agent shall be
allowed to continue its activities in other fields. There is a tendency to
broadly interpret this expression, in practice. Therefore, it is defended
that the scope of the below-mentioned compensation should also be
broader
9
.
The time limitation for the agreement is set forth by law. Pursuant
to Article 123 of the TCC, non-competition agreements should be con-
cluded for a maximum of two years, starting from the termination of
the agency agreement. This two-year period is definite and shall nei-
ther be extended, nor shall it be suspended or interrupted. The agree-
ments stipulating a non-compete obligation for a period longer than
two years shall be deemed partially null and void, and the restriction
shall ipso jure not procure any effect after the termination of this two-
year period
10
.
Timing of the Non-Competition Agreements
As stated in Article 123 of the TCC, the timing of non-competition
agreements is essential. As a result of the purpose regarding the pro-
tection of the agent, non-competition agreements shall only be con-
cluded along with the agency agreement, or during the term of the
agency agreement. However, it is unclear whether the non-competition
agreements concluded after the termination of the agency agreement
fall within the scope of Article 123 of the TCC. However, principals
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8
Kaya, Arslan
; p. 292.
9
Kaya, Arslan
; p. 292.
10
Kaya, Arslan
; p. 293.