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ARTICLE · 16 MARCH 2022

Widespread And Yet Controversial: Distributorship And Its Termination

Baysal & Demir
Baysal & Demir
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The legal framework of distributorship relationship that has a wide presence in Turkish commercial life is not drawn clearly.

TurkeyCorporate/Commercial Law

I. INTRODUCTION

The legal framework of distributorship relationship that has a wide presence in Turkish commercial life is not drawn clearly. The only provision in the Turkish Commercial Code ("TCC"), which is expressly designated to apply to distributorships as well as to agencies, is about the portfolio compensation. Other than this, neither categorically rendering distributorships with distinctive qualities subject to the framework of agents nor leaving it entirely to the parties' freedom of contract does yield the desired result. Therefore, the scholar authorities have found a midway by applying TCC's protective provisions originally stipulated for agencies to the distributorships to the extent these business models resemble. 

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