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Invalidity
Article 123 of the TCC regulating the non-compete obligation is
mandatory; therefore, any disposition to the detriment of the agent is
null and void. The right for an adequate compensation is also deemed
mandatory, that is why any disposition providing non-adequate and
low compensation is deemed null and void, as well.
Conclusion
In conclusion, the non-compete obligation of the agent may be
determined for the period of agency agreement, or after termination of
the agency agreement. The non-compete obligation of the agent pro-
vided in Article 104 of the TCC is set forth in order to protect the agent
considering the subject, time and geographical limitations. However,
under Turkish Law, an agent’s non-competition with its principal is the
rule; otherwise, shall be only agreed upon in writing. The non-compete
obligation for the period after the termination of the agency agreement
is provided by non-competition agreements. Such agreements are also
concluded in writing, and a signed copy that included the terms of the
related agreement by the principal should be delivered to the agent.
Non-competition agreements shall be concluded for a maximum of
two years, and considering the purpose of the provision, it is more
appropriate to state that such agreements shall be concluded along with
the agency agreement or during the period of agency agreement. As
mentioned in detail, above, since non-competition agreements are
synallagmatic, the principal shall adequately compensate the agent in
exchange for its non-compete obligation, if any.
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