Abstract:

The reasons for the termination of the usufructuary lease contract are regulated between article (art.) 367 and 371 of the Turkish Code of Obligations (TCO). One of these reasons is the bankruptcy of the tenant (TCO art. 370), which is the subject of our study. The tenant’s bankruptcy is one of the extraordinary termination reasons that terminate the usufructuary lease contract. According to TCO art. 370 – sentence (s.) 1, where the tenant becomes bankrupt, the usufructuary lease contract automatically terminates on commencement of bankruptcy proceedings, that is, when the bankruptcy decision is made by the court about the tenant. As stated in TCO art. 370 - s. 2, the lessor is obliged to continue the usufructuary lease contract until the end of the lease year, provided that sufficient warranty is given for current year’s lease and the inventory. In this respect, the usufructuary lease contract automatically terminates at the end of the lease year. In other words, the assurance shown in accordance with TCO art. 370 - s. 2 only delays the expiration of the usufructuary lease contract until the end of the relevant rental year. In our study, firstly, the legal nature of TCO art. 370 and its application area are explained. Afterwards, the conditions necessary for the application of TCO art. 370 are examined. Finally, the provisions and consequences of TCO art. 370 are discussed.

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