Company X, based in the United Arab Emirates, intended to establish a long-term commercial relationship with Company Y in Türkiye for the regular purchase of products. In the initial agreement prepared by the parties, the provisions concerning delivery conditions, payment dates, consequences of defective products, and termination of the agreement were not sufficiently clear. In particular, the requirement for a substantial advance payment created a significant risk for the foreign company.
Before the agreement was signed, the entire text was reviewed; the payment and delivery mechanisms were restructured, the parties’ responsibilities were clarified, and the provisions concerning default were made more explicit. As a result of the negotiations, the parties agreed on the revised agreement and commenced the commercial relationship. In this way, a significant portion of the contractual risks was eliminated before any dispute arose. Commercial companies and commercial relations in Türkiye are governed by the Turkish Commercial Code, while contractual relations are regulated primarily under the Turkish Code of Obligations and other applicable legislation.