ERDEM-NEWSLETTER-2018-metin

41 COMMERCIAL LAW Under Article 255 of the TCC, installment sales agreements shall only enter into force at the end of the period of withdrawal and, thus, the seller cannot demand execution of prepayment from the purchaser before the end of the period of withdrawal. Installment sales agree- ments shall yield its effects and consequences for the buyer seven days after the receipt of a copy of the contract signed by the parties. The buyer may notify the seller, in writing, of the cancellation of the declaration of intent during this period. An increase in the sales price in return for waiver of advance payment shall be invalid according to the Article 256/IV of the TCO. This leads to partial nullity and, thus, the sales contract shall survive, together with the prepayment obligation. The seller who delivers the goods to the purchaser without receiving the prepayment shall lose his rights over the unpaid portions of the prepayment amount that was determined in the contract (TCO Article 256/III). Obligations of prepayment and limitations of the contractual time period are to protect the buyer. Obligation of prepayment guarantees that the buyer is able to pay at least a part of the sales price. On the other hand, the purpose of limitation of the contractual time period is to prevent physiological deception of the buyer through demonstration of low installment amounts that are spread out over an extended period of time 6 . Form Requirements and Content TCO Article 253/II stipulates that installment sales agreements shall be invalid unless made in writing. As both parties undertake ob- ligations in the agreement, it is accepted that both parties shall sign the agreement; thus, approval of an installment sales agreement that is concluded orally by the parties, or with the signature of only one of the parties, shall not be sufficient 7 . Under the Article 253/III of the TCO, in the event that the subject of the installment sales agreement is a good that “falls under the field of activity” of the seller, the legislator does not find ordinary written 6 Yavuz, Cevdet : Türk Borçlar Hukuku Özel Hükümler, 10th ed., İstanbul 2014, p. 288. 7 Develioğlu , p. 531-532.