Does A Lease Agreement Terminate If A Company Ceases Operations?

I. Introduction

Companies may partially or entirely cease their operations due to economic conditions, restructuring, changes in intra-group organisation, the relocation of production to another country or facility, or withdrawal from a particular market. However, a company's cessation of its actual operations at a workplace does not automatically extinguish its legal personality or terminate the agreements to which it is a party. This article examines the options available to companies for terminating a lease agreement before the end of its term or returning the leased premises early, with reference to the relevant provisions of the Turkish Code of Obligations No. 6098 (the "TCO"), potential legal grounds, associated risks and practical courses of action.