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ARTICLE · 25 SEPTEMBER 2009

Portfolio Compensation Under Turkish Law

The customer group acquired by the agency or the exclusive seller during their operation under a exclusive distributor agreement or agency contract is called as “The Portfolio” and in case of the termination of such contract, compensation which may be claimed by the agent or the distributor to be undertaken by the counter party of the agreement, the principal, is called “Portfolio Compensation” under Turkish law.

TurkeyCorporate/Commercial Law
Bilge Saltan
Bilge Saltan

Introduction

The customer group acquired by the agency or the exclusive seller during their operation under an exclusive distributor agreement or agency contract is called as "The Portfolio" and in case of the termination of such contract, compensation which may be claimed by the agent or the distributor to be undertaken by the counter party of the agreement, the principal, is called "Portfolio Compensation" under Turkish law. Moreover the terms such as "Compensation of Termination" or "Portfolio Rights" are also used in Turkish doctrine.

It is necessary to state that, the reason of this compensation is the fact that despite of the termination of the contract, the former customer earnings, which were created by the distributor or the agent do still continue.

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