most cases are very long, written in incomprehensible wording, usual-
ly limiting the responsibilities of the party drafting such contract, and
which are not submitted for review nor negotiation by the counterparty.
This resulted in the increased need to provide protection, especially for
consumers who become party to goods and services contracts, as these
contracts usually include illegible and incomprehensible general terms.
This need resulted in an amendment to the fLCP by Law No. 4822,
introducing a new Art. 6 governing unfair terms in consumer transac-
tions, which regulated general transaction terms for the first time under
Turkish law. Art. 6 fLCP defines general transaction terms and refers
to unfair terms as “… contract terms which have been unilaterally
included in the contract without negotiating with the consumer, which
cause imbalance between the rights and obligations of the parties aris-
ing from the contract to the detriment of the consumer in violation of
the bona fide principle”. The law regulates that such conditions will not
be binding upon consumers.
Agreements between two merchants, which are not considered
consumer contracts, were not subject to the provisions of the LCP, and
Articles 19 and 20 of the abrogated Code of Obligations No. 818, gov-
erning invalidity, were applied in cases of unfair general terms.
However, said provisions regulated the invalidity of agreements due to
violation of the public order or morale, or whose subject matter was
impossible; and did not enable any intervention in the content of the
agreement. Nevertheless, unilaterally prepared contracts resulted in
major problems, not just for consumers, but also for merchants.
In order to mitigate these problems, the Turkish Code of
Obligations No. 6098 (“TCO”) regulated general transaction terms, to
govern all types of agreements
3
. The TCO initially provides a defini-
tion of general transaction terms, and regulates the inspection of
whether these terms became contractual terms (validity assessment),
how these terms will be construed (interpretation assessment), and
which terms will be deemed null and void (content assessment).
344
NEWSLETTER 2014
3
For detailed information on general transaction terms, see
Berna Aşık Zibel
, The Concept Of
“General Transaction Terms” And Its Implications Under New Code Of Obligations,
http://www.erdem-erdem.av.tr/en/articles/the-concept-of-general-transaction-terms-and-its-implications-under-new-code-of-obligations/ (accessed on 30 May 2014).