Contractual Penalties and Penalty Claims

A penalty clause does not mean the specified sum is recoverable for every breach together with the principal obligation. The conduct triggering it, relationship with performance, validity, and special rules must be read together. Statements made on accepting delivery or payment may also affect the claim.

For Which Breach Was the Penalty Agreed?

A penalty for complete or improper non-performance differs from one for failure to perform at a specified time or place. Article 179 of the Turkish Code of Obligations determines the relationship between performance and penalty. Acceptance of late performance without reservation may matter for certain penalties. Delivery and acceptance terms must be examined alongside the penalty clause.

Absence of Loss and Excessive Penalties

A penalty may arise without actual loss where the conditions are met. Its amount, relationship to a valid principal obligation, and reduction require separate assessment. Special merchant rules in commercial matters may affect the result. A high penalty and every loss cannot be assumed automatically cumulative for one breach; their legal relationship must be established.

How Are Calculation and Evidence Prepared?

The start and end of the breach, extensions, delivery, acceptance reports, and payments must be recorded. A daily penalty calculation must identify its period. Impossibility not attributable to the debtor and later contractual changes must also be examined. We assess the claim's basis and the other party's potential reduction defence together.

Documents That May Be Prepared for the Initial Review

• The full contract and penalty clause
• Delivery and acceptance reports
• Reservations and notice records
• A daily penalty calculation

Submit Your Matter

File review and representation are paid services. Scope and fees are agreed in writing before work begins.