Attention When Making A Contract!
Failure to manage contract processes correctly causes companies to suffer economic risks and sanctions. Prof. Dr. Umut Yeniocak from Altınbaş University explained what companies need to do to avoid losses due to contract practices.
Altınbaş University's Faculty of Law Contracts and Obligations Law Specialist Prof. Dr. Umut Yeniocak evaluated the elements that companies need to pay attention to in order to prevent damages during the contract process.
Dr. Yeniocak stated, "For example, not knowing whether contracts fall under the prohibition of making contracts in foreign currency in our country during the contract process can lead to administrative fines for the company and other economic risks."
He emphasized that the lack of a conscientiously drafted penalty clause in the contract is a frequently encountered situation, stating, "This can put the company in a difficult situation in a lawsuit opened later. Especially, if the penalty clause related to late delivery has accrued, and the right to demand is not reserved during the delivery, an employee who is unaware that the penalty clause can no longer be claimed poses an economic risk for the company."
Dr. Yeniocak reminded that special form rules specified by the law must be followed when making contracts such as surety agreements, and underlined that a contract made by an uninformed person would be invalid, which could have severe consequences for companies.
Stressing the importance of knowing competition rules, Dr. Yeniocak emphasized that a company executive unaware of competition rules should pay special attention to email correspondences. He warned, "An unconscious manager is at risk of violating competition rules at any moment, from his correspondences to statements given to the press. The realization of this risk can expose the company to high fines."
Dr. Yeniocak pointed out that sometimes companies suffer significant losses due to the failure to comply with the simplest signature rules that should be included in the contract or negligence. He said, "Your authorized personnel should know what basic concepts such as signature, initial, stamp, signature circular mean and what to pay attention to in practice. Neglecting simple precautions that can be taken when signing a contract with a customer can turn the company's entire accounts upside down in a lawsuit. We see many examples of this."
Prof. Dr. Umut Yeniocak stated that they have entered into an important collaboration with TOBBUYUM A.Ş., established by the Union of Chambers and Commodity Exchanges of Turkey (TOBB), based on these common mistakes and said, "We will organize training sessions in chambers of commerce and industry and in companies that request it in our country. We aim to provide personnel and managers involved in the process of preparing and reviewing contracts in companies with professional, application-oriented strategic knowledge and skills, making them aware of current developments, judicial practices, and risks in their contracts."
TOBBUYUM General Manager Dr. Onur Yüksel stated that their goal is to provide TOBB member companies with a valuable service in the field of contracts by organizing training organizations with a focus on practice.