Advance Payment
"Must an advance payment be returned if the contract fails?"
Quick Answer
A partial payment made by a buyer to a seller before the goods are delivered or services are fully rendered, acting as financing or security for the contract.
Scope and Legal Distinctions
An advance funds future performance; it is not automatically a non-refundable deposit or a withdrawal fee. The contract should say how the amount is credited and when repayment becomes due.
What to Check in Practice
Match the transfer reference to the contract and invoice. Before paying, define milestones, acceptance evidence, refund triggers and any bank guarantee securing repayment.
Sources & Authorities
Statutory framework and official guidance for this definition.
Need Expert Legal Guidance?
Our experienced attorneys can help you navigate advance payment under Turkish law.
Schedule a Consultation