TÜRKIYE Law and Practice Contributed by: Faruk Aktay and Ayşe Müge Aktay, Aktay Law Firm
8.3 Enforcement of Settlement Agreements
plexity of the case and whether or not there are multiple parties. However, the courts will set a target timeframe for each case.
Settlement agreements are binding between the parties. According to Article 1 of the Code of Obligations No 6098, the settlement agreement is a contract and the obligations under it must be fulfilled. If the parties violate this agreement, according to Article 66 of the Enforcement and Bankruptcy Law, the settlement agreement can be enforced if it is the document that forms the basis of the proceedings. If settlement agreements are approved by the court, they are applied in the same way as a court decision. According to Article 125 of the Code of Obligations, there is a right to demand compensation for breach of contract. 8.4 Setting Aside Settlement Agreements There must be a legal basis to cancel settlement agreements. If there is a violation of public order and public morality in the event of unlawfulness specified in Article 27 of the Code of Obligations, it may be cancelled. If the parties do not have the capacity to act, the contracts are deemed invalid in line with Article 43 of the Code of Obligations. If an event occurs that cripples the will of the person through fraud and deception, the con- tract may be cancelled after this situation is discovered. In addition, the contract may be cancelled if there is information that will cause an error in the will of one party to the contract through coercion and pressure that renders the will unusable. Failure to fulfil the formal condi- tions is one of the reasons for invalidity. In order to be cancelled, the relevant person must make an application. After learning the reason for annulment, they must file the lawsuit within the timeframes specified in the law.
8. Settlement 8.1 Court Approval
The court decides on a settlement based on the nature of the case. In cases affecting the rights of children, as stated in Article 363 of the CPC, it is evaluated whether a settlement is appropri- ate in order to protect the interests of the child. Court approval is required for those who lack legal capacity, including those who lack the capacity to act or who are restricted. A court decision is also required in cases of compensa- tion, as it protects the interests of the injured party. Court approval is also required in cases of public order as specified in Article 27 of the CPC. 8.2 Settlement of Lawsuits and Confidentiality The termination of litigation through settlement can be kept confidential between the parties. These confidentiality agreements are enforce- able with respect to court orders and legal and commercial boundaries. The parties can prevent the text prepared for the settlement from being shared with a third party by making a confiden- tiality agreement regarding the case. In addition, the court may issue a confidentiality order for the protection of personal data and to prevent violation of commercial boundaries. If commercial and legal information is learnt during the settlement, it is not possible to disclose them without permission. Otherwise, legal sanctions may occur.
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