ERDEM-NEWSLETTER-2018-metin

43 COMMERCIAL LAW instance, if the buyer defaults on paying the advance, the seller may only demand the advance, or elect to annul the contract. Following the valid establishment of the contract, in the event the buyer defaults on payment of the installments, the seller may demand payment of the due installments, or may demand that the remainder of the sales price be paid, in full, immediately, or may annul the contract. For the buyer to be able to demand the remainder of the sales price, in full, or annul the contract, the seller must have exclusively reserved this right, and the buyer must have defaulted on at least two respective installments that constitutes at least one-tenth of the agreed sales price, or on an installment that constitutes at least one-fourth of the selling price, or on the last installment. However, if the amount the seller demands due to annulment is equal to or more than the amount of the paid installments, the seller cannot annul the contract. Before the seller exercises the right to demand complete payment of the remaining amount of the sales price owed, or annulment of the contract, he must grant a period of at least fifteen days to the buyer in which to remedy the situation. Annulling the installment sales agreement is a right that is grant- ed only to the seller under Article 260 of the TCO. According to the provision, in the event the seller annuls the contract due to the default of the buyer on payment of installments, both parties are obliged to return what they have received thus far. The seller may also demand an equitable usage fee and compensation in the event of a decrease in the value of the sold goods due to unusual use. However, the seller cannot demand more than the amount that could have been demanded if the performance had been executed on time. In the event the seller annuls the contract prior to the transfer of the goods because of the buyer’s default on payment of the advance, he can only demand the legal interest that has accrued, and only on the unpaid advance, until the date of annulment of the contract, and compensation owed due to the decrease in the value of the goods after the establishment of the contract. If any penalty clause has been stipu- lated, it cannot exceed ten percent of the advance payment price.