Types of Contracts under Turkish Law 2025: Sales, Service, Lease, Works and Donation Agreements

Choosing the correct contract type under Turkish law is not a formality; it is a legal necessity. In Turkey, a significant number of legal disputes arise not from bad faith, but from the selection of an inappropriate contract type or from contracts drafted in an unclear, incomplete, or technically inaccurate manner.

As of 2025, Turkish court practice under the Turkish Code of Obligations clearly demonstrates that correct contract classification combined with high-quality contract drafting significantly reduces legal disputes, ensures that the parties’ rights and obligations are defined accurately and comprehensively, and prevents prolonged litigation and loss of rights during judicial proceedings. This article has been prepared by Bosphorus Law Firm as a practical guide for individuals, companies, and foreign investors entering into contractual relationships governed by Turkish law.

Overview of Contract Types under Turkish Law

Contracts in Turkey are primarily governed by the Turkish Code of Obligations No. 6098, which is based on the principle of freedom of contract. While parties are generally free to determine the content of their agreements, certain contract types are specifically regulated by law.

Under Turkish law, contracts are broadly categorized as:

• Named contracts, which are expressly regulated by statutory provisions, and

• Unnamed or mixed contracts, which are formed based on contractual freedom.

In determining the applicable legal regime, Turkish courts focus on the actual substance of the contractual relationship rather than the title of the contract, making correct legal classification essential from the outset.

Main Types of Contracts under Turkish Law

Sales Agreement

A sales agreement obliges the seller to transfer ownership of an asset to the buyer, while the buyer undertakes to pay a purchase price.

Key characteristics:

• Transfer of ownership is essential

• Consideration (price) is mandatory

• Performance is typically one-time

Common use: commercial sales, real estate transactions, and transfers of machinery or equipment.

Service Agreement

A service agreement involves one party performing work over a certain or indefinite period in exchange for remuneration.

Key characteristics:

• Continuous performance obligation

• Mandatory payment of remuneration

• Employer’s right to instruction and supervision

Common use: consultancy services, IT support, technical assistance, and ongoing service relationships.

Lease Agreement

A lease agreement grants the right to use an asset in return for rent, without transferring ownership.

Key characteristics:

• Right of use, not ownership

• Fixed-term or indefinite duration

• Applicable to movable and immovable property

Common use: residential and commercial leases, equipment and vehicle leasing.

Works Contract

A works contract is result-oriented and focuses on the completion of a specific work or project.

Key characteristics:

• Completion of the agreed work is essential

• Liability for defective performance is significant

• Remuneration is tied to the final result

Common use: construction projects, renovations, architectural services, and custom software development.

Donation Agreement

A donation agreement involves the gratuitous transfer of an asset or right from the donor to the donee.

Key characteristics:

• No consideration

• Gratuitous nature

• Statutory form requirements may apply

Common use: family asset transfers, charitable donations, and gratuitous property transfers.

Comparative Overview: Choosing the Right Contract Type

Purpose	Appropriate Contract Type
Transfer of ownership	Sales Agreement
Continuous services	Service Agreement
Grant of usage rights	Lease Agreement
Completion of a specific work	Works Contract
Gratuitous transfer	Donation Agreement

Selecting the correct contract type ensures that the appropriate legal regime applies and prevents misinterpretation of obligations.

Who Is Covered by These Contract Types – Who Is Not?

Covered:

• Individuals and entrepreneurs

• Companies operating in Turkey

• Foreign investors and non-residents

• Property owners, contractors, and donors

Not covered:

• Public law and administrative contracts

• Relationships governed exclusively by public law

• Employment contracts subject to labor law, unless misclassified as civil contracts

  
  

Why Correct Contract Classification Prevents Legal Disputes

Using an incorrect contract type often leads to unclear obligations, misapplication of liability rules, prolonged litigation, and increased risk of loss of rights. Courts may struggle to determine the parties’ true intentions, resulting in extended proceedings and unpredictable outcomes.

In contrast, proper contract classification and professional drafting:

• Reduce the likelihood of disputes

• Shorten judicial proceedings

• Prevent evidentiary confusion

• Protect parties from unexpected liabilities

  
  

Why Legal Assistance in Contract Drafting in Turkey Is Essential

Contract drafting requires more than legal knowledge; it requires practical experience and familiarity with Turkish court practice. Contracts prepared without professional legal assistance may expose parties to serious legal and financial risks.

Bosphorus Law Firm provides comprehensive legal support in:

• Determining the correct contract type

• Drafting clear, enforceable agreements

• Preventing future contractual disputes

  
  

Bosphorus Law Firm – Contract Law Services

• Contract type analysis and legal risk assessment

• Drafting and reviewing sales, service, lease, works, and donation agreements

• Preparation of bilingual and multilingual contracts

• Legal support during contract negotiations

• Dispute prevention and litigation support

Services are provided in Turkish, English, German, French, Russian, and Arabic.

Related Topic – Introductory Guide

For foundational knowledge on contractual relationships, you may also review “Introduction to Contract Law under Turkish Law: Fundamental Concepts and Principles.”This article serves as an introductory guide and complements the present publication.

Information for Individuals Living Abroad

Turkish citizens residing abroad and foreign investors frequently face enforceability risks when entering into contracts governed by Turkish law. Contracts drafted solely under foreign legal concepts or without compliance with mandatory Turkish law provisions may be deemed invalid or unenforceable in Turkey.

For individuals living abroad, the following are particularly important:

• Remote legal consultancy

• Multilingual contract drafting

• Ensuring enforceability before Turkish courts and enforcement offices

• Representation through power of attorney

Drafting contracts in full compliance with Turkish law is essential to avoid future disputes and loss of rights.

Conclusion and Legal Recommendation

As of 2025, correct contract classification and high-quality contract drafting form the foundation of legal security under Turkish law. Understanding the distinctions between sales, service, lease, works, and donation agreements significantly reduces legal disputes, shortens litigation processes, and prevents loss of rights.

To ensure legally secure and enforceable contractual relationships, professional legal assistance from Bosphorus Law Firm is strongly recommended.More information is available at www.bosphoruslaw.com.

Legal Consultation – Contact Us

Need legal assistance with contract drafting or contract classification under Turkish law?

📞 +90 501 246 4001

✉️ info@bosphoruslaw.com

🌐 www.bosphoruslaw.com

Remote legal consultation available for clients living abroad.

Legal Disclaimer

This article is provided for general informational purposes only and does not constitute legal advice. Each legal matter is unique and requires professional legal assessment.