The marketing contract is defined under Article of 448 of Turkish Code of Obligations ("TCO"). In the referred article, a marketing contract is defined in which the marketer acts continuously as the intermediary for every action outside of the workplace on behalf of the employer who owns a commercial enterprise or if a written agreement exists, he accepts to fulfill the agreed transactions and the employer pays a fee for such services. According to the marketing contract provisions under the TCO, a written agreement on the salary which consists exclusively or predominantly of commission is valid only if such commission is an appropriate remuneration for the services of the marketer.
In the case of the marketing contract of limited duration includes such provision; each of the parties would has the right to cancel the contract, by taking the cancellation notice in account.
If it has been decided that the marketing contract of limited duration shall become null and void upon notification but either party has not made notification for cancellation, the contract transforms into a contract of unlimited duration. In such case each of the parties would has the right to cancel the contract, by taking the cancellation terms in account. These terms are two weeks for the services of whom totals up to one year; four weeks for a marketer who has service period from one to five years; and six weeks for a marketer with a service period of more than five years. The principal may cancel the marketing contract by paying the wages for the cancellation notification period in advance. In such case the commission would be paid based on the minimum customary value.
The Article 460 of the TCO envisages that in case of termination of the contract, the marketer will be entitled to a commission for every order which is conveyed to the employer until the termination date without taking into consideration its acceptance and due date and for each transaction he conducted personally or for which the marketer acted as the intermediary. There are not any other compensation requirements under the TCO regarding the respective marketing contract.
On the other hand, we have to state that because of the Principal gives an exclusive right to the respective marketer as an agent, there is a minimized possibility that the compensation provisions of the Article 122 of the Turkish Commercial Code ("TCC") would also be applicable to the other continuous contractual relationships granting an exclusive right, as long as the situation shall not be against good faith.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
