Abstract:

One reason to end a mandate agreement involves the unilateral termination procedure regulated under Article 512 of the Turkish Code of Obligations (TCO). According to this provision, the mandatee and mandator are entitled to unilaterally terminate a mandate agreement without need to propound upon a rightful reason or grant a notice period. The purpose of this provision is to allow the parties to easily terminate a contractual relationship in the event of a deterioration between the parties in the mutual trust that lies at the foundation of the mandate agreement. However, terminating an agreement without any reason or notice period may have detrimental effects on the other party in certain cases. In consideration of this possibility, legislators have regulated that the party who terminates a mandate agreement at an inopportune juncture shall compensate the other party for the damages arising from such a termination (qqv. TCO Art. 512 /p. 2). This study aims to review the right to unilaterally terminate a mandate agreement regulated under Article 512 of the TCO. The study will review within this scope the legal nature of this right, the procedures for its use, and its field of application in the first stage. Following this stage, the study will peruse information on compensation liability due to the termination of a mandate agreement at an inopportune juncture and review the legal grounds and scope regarding this compensation. The study will conclude by questioning whether Article 512 of the TCO is a mandatory provision or not.

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