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ARTICLE · 09 JUNE 2022

Time Limitations Concerning Portfolio Compensation

Baysal & Demir
Baysal & Demir
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Baysal & Demir

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Portfolio compensation (compensation for clientele), a right granted to the weaker side of agency or similar contractual relationships upon termination, is controversial and vague in Turkish law in...

TurkeyCorporate/Commercial Law

Portfolio compensation (compensation for clientele), a right granted to the weaker side of agency or similar contractual relationships upon termination, is controversial and vague in Turkish law in many aspects.1 One of these is how and until when to exercise the right to claim portfolio compensation.  

There are two main provisions in relation with this issue:

  1. Turkish Code of Obligations (“TCO”) Art 147 provides for a statute of limitation ( Verjährung) of five years for the claims arising out of certain contracts including agencies,
  2. Turkish Commercial Code (“TCC”) Art 122 requires the claims for portfolio compensation to be asserted in one year following the termination.

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