Equalization Claim

The Turkish Commercial Code that entered into force in 2012 includes an article regarding the equalization claim (portfolio compensation) and its calculation. Prior to the effective date of the Code, it was also accepted by the doctrine and the court precedents that such compensation should be paid to the agency or distributor.

According to Article 122 of the Turkish Commercial Code, the agent shall be entitled to compensation to be calculated fairly, if after the termination of the relation between the parties:

- the principal (manufacturer) gains considerable interests also after the termination of the agreement by means of the new customers found by the agent (distributor),
- the agent, due to termination of the agreement, loses its right to claim fee for the transactions concluded with the customers introduced by the agent or those to be concluded in a short time period, and the agent would have been entitled to claim such fee if the agreement was not terminated, and
- upon review of the nature and conditions of the concrete case, it is fair to pay such compensation.
The equalization request cannot be waived in advance.

Unless it is against equity, this principle shall be applied for termination of the exclusive distributorship agreements or other continuous agreements granting similar monopoly rights.


For further information please contact onder.budak@budaklegal.com