Penalty Clauses
"Are penalty clauses enforceable in Turkish contracts?"
Quick Answer
In many cases, the penalty can be claimed without proving actual loss, but the court may review fairness and may reduce excessive amounts.
Scope and Legal Distinctions
A contractual penalty fixes an agreed consequence for a specified breach. Its relationship to performance and damages, and any reduction rule, require legal assessment.
What to Check in Practice
Define the trigger, calculation, cap and whether performance or additional damages remain available; preserve evidence of the actual breach.
Sources & Authorities
Statutory framework and official guidance for this definition.
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