NEWSLETTER-2017

255 LAW OF OBLIGATIONS Handover of the Leased Property after Conclusion of the Lease Agreement* Assoc. Prof. H. Murat Develioglu Introduction As is known, a contract is only effective between the parties due to the principle of relativeness of contract. Lease contracts are also relative contracts and, as a result, if the lessor entitles a third party to a paramount right, related third parties shall not be obliged to allow lessees to use the leased property as a rule. However, the Turkish Code of Obligations (“TCO”) Article 310 and the following articles regulate a different rule. Hereinafter, the regulation in the period of former Turkish Commercial Code (“fTCC”) will be examined firstly, then the aforementioned regulations will be addressed. Regulations in the Period of the fTCC In Article 254 of the fTCC, the dissolution of leases through sales was regulated. According to the related provision, in the case of trans- fer of the use of the leased property to a third party by the lessor or, as a result of execution or bankruptcy proceedings, the “ consent ” of a third party was the condition of continuation of a lessee’s use of the leased property. Legal consequences of this ‘ consent’ –whether it is participation to debt or transfer of the contract- was debated. That being said, according to Code numbered 6570 which ap- plies to certain immovable leases, contracts are transferred by law. Nonetheless, if a new owner is in need of using the property as a whole for his own use, or that of his spouse’s and/or his children’s needs, or in part as a residence or as a place of business for personal execution * Article of October 2017