Circumvention of Law
"Is circumvention of law illegal?"
Quick Answer
Circumvention of law (Peçeleme) occurs when parties use a legally valid transaction to bypass a mandatory legal prohibition, effectively achieving a forbidden outcome.
Scope and Legal Distinctions
An arrangement may be assessed by its substance where its structure attempts to evade a mandatory rule. Calling a transaction a different name does not determine its legal classification.
What to Check in Practice
Review the actual economic purpose, parties, performance and protected rule before relying on an artificial contractual label.
Sources & Authorities
Statutory framework and official guidance for this definition.
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