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Lastly, as a third condition, the damage should be resulted from a

faulty behavior.

Framework of the

Culpa in Contrahendo

Liability

Certain liabilities arising from the fault of one of the parties before

the conclusion of a contract are regulated under legal dispositions,

while many such liabilities have been introduced by scholars and court

practices.

As mentioned before,

culpa in contrahendo

is not regulated under

Turkish legislation, however, it is generally accepted that certain lia-

bility dispositions are based on the concept of culpa in contrahendo.

For instance, as per Article 35 CO, a party acting in error and invoking

that error to repudiate a contract is liable for any loss or damage aris-

ing from the nullity of the agreement where the error is attributable to

his own negligence.

Moreover, Article 44 CO regulates that where the principal or his

legal successors have omitted to insist on the return of instruments set-

ting out the authority of the agent, they are liable to

bona fide

third par-

ties for any loss or damage arising from that omission.

Similarly, pursuant to Article 47 CO, where a person having no

representative authority acts as an agent of the principal, any damage

caused by the invalidity of the contract shall give rise to liability.

Situations which may be defined as

culpa in contrahendo

are also

described by scholars and precedents.

For instance, some scholars hold that the party providing mislead-

ing information during the pre-contractual phase shall be responsible

pursuant to

culpa in contrahendo

. Besides, it is also contrary to the

good faith principle and diligence obligation in the pre-contractual

phase to hide information which should be provided to the other party

and to continue negotiations knowing that the subject of the contract is

impossible

4

.

LAW OF OBLIGATIONS

251

4

Oğuzman, Kemal / Öz, Turgut:

Borçlar Hukuku Genel Hükümler Cilt I

, Vedat Kitapçılık,

İstanbul 2011, p. 428.