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The Turkish Court of Appeal awarded compensation for liability as

a result of

culpa in contrahendo

. Therefore, the liability as a result of

culpa in contrahendo

results in a compensation obligation.

For instance, according to the Turkish Court of Appeal, the party

which misleads the other party by pretending to want to conclude a

contract in the future without having any strong intention to do so, is

liable for being misleading

5

. In so far as contract negotiations establish

a legal relationship between the parties, the parties should bargain in

good faith during this legal relationship (Article 2 of CC).

Similarly, the Court of Appeal also upheld

6

that the parties are

bound to take such precautionary measures as are necessary for the

protection of each other’s person or property during the pre-contractu-

al phase. Moreover, the parties are liable of damages arising from a

fault or negligent behavior in this phase.

Conclusion

Consequently, it may be concluded that a legal relationship is nat-

urally established between parties convened to negotiate a possible

contract. This legal relationship obliges the concerned parties to act in

good faith and diligently. In case there is a breach of these obligations

and resulting damage, this damage should be compensated pursuant to

the concept of culpa in contrahendo, which is not clearly regulated

under Turkish laws, but has been established and enhanced by scholars

and precedents.

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NEWSLETTER 2014

5

Please see. Decision of 3rd Civil Chamber of Court of Appeal dated 15.09.1997 and numbered

1997/8864,

www.kazanci.com.

6

Please see. Decision of Court of Appeal Assembly of Civil Chambers dated 13.02.2013 and

numbered 2013/239,

www.kazanci.com.