Distinguishing Between Guarantee And Suretyship Agreements

Introduction

As is widely known, legal transactions are formed upon consensus of declarations of intent. The purposes of the parties engaging in the legal transactions are reflected in these declarations of intent. However, the parties' declarations of intent may not reflect the real intention of the parties at all times. In some cases, the real intentions of the parties must be determined. The disputes arising in practice mainly originate from determining the nature of the relationship between the parties, making it necessary to determine the rules applicable to this relationship. Even though parties may define their relationship in a certain way, the determination of the nature of the legal relationship between parties must be made according to their real intentions¹. This general rule is based on Article 18² of the Code of Obligations numbered 818 ("CO") and Article 19 of the Turkish Code of Obligations numbered 6098 ("TCO"). Pursuant to the two