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ARTICLE · 05 APRIL 2017

Issues To Consider When Drafting Guarantee Agreements

Kolcuoğlu Demirkan Koçaklı Attorneys at Law
Kolcuoğlu Demirkan Koçaklı Attorneys at Law
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Kolcuoğlu Demirkan Koçaklı Attorneys at Law

Kolcuoğlu Demirkan Koçaklı Attorneys at Law

The Firm Kolcuoğlu Demirkan Koçaklı (KDK) is an independent Turkish law firm advising domestic and...

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Our recent experience in disputes governed by Turkish law shows that parties should be very diligent while drafting guarantee agreements.

TurkeyCorporate/Commercial Law

Our recent experience in disputes governed by Turkish law shows That parties should be very diligent while drafting guarantee agreements. Omissions that seem very simple may lead to significant problems in later stages, particularly in determining the legal nature of these agreements, whereby confusions arise about whether the agreement is a guarantee or a surety.

A guarantee agreement is an agreement where the guarantor guarantees the performance of any type of agreement. If the beneficiary of the guarantee faces problems such as lack of payment or non-delivery of a product, service or construction, the guarantor assumes the risk of the debtor's failure to fulfill his obligation. The debtor's obligation is separate from that of the guarantor's.

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