Supply Agreement
"What should be included in supply agreements under Turkish law?"
Quick Answer
Supply agreements should cover specifications, pricing mechanisms, delivery terms, warranties, liability limits, termination rights, and dispute resolution.
Legal Framework in Turkey
Supply agreements are generally governed by the Turkish Code of Obligations No. 6098, and depending on the structure and cross border elements, other rules may also apply (e.g., the Turkish Commercial Code, Incoterms usage, and in international sale of goods scenarios, potentially CISG, as well as sector specific regulatory requirements).
Key Points to Remember
- Many supply contracts are governed by the Turkish Code of Obligations together with relevant provisions of the Turkish Commercial Code, depending on the parties and the transaction
- Freedom of contract is a fundamental principle, with some mandatory provisions
- Written form may be required for certain agreements
- Choice of law clauses are often upheld in international B2B contracts, subject to mandatory rules and public policy limitations that may apply in Turkey
Drafting Considerations
When drafting contracts involving supply agreement, attention should be paid to Turkish-specific requirements and practices. Bilingual contracts (English-Turkish) are common for international transactions.
Including appropriate dispute resolution mechanisms, clear governing law provisions, and well-defined obligations helps prevent future conflicts and ensures enforceability.
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