Points to Consider When Preparing a Contract
Today, for both individuals and businesses, contracts are one of the fundamental pillars of legal relationships. From renting a house to an employment contract, from the sale of goods to service agreements, they appear in every aspect of life. However, many people may face serious loss of rights in the future because they do not pay attention to details when signing a contract.
For this reason, having knowledge about the points to consider when preparing a contract is the most important step in establishing a secure relationship both financially and legally.
The Contract Preparation Process
Contract preparation is the process of creating a written document in which two or more parties define their rights and obligations on a specific matter through mutual intent. This document serves as evidence in potential disputes. A properly prepared contract ensures legal security between the parties, prevents future conflicts, and provides ease of proof before the court when necessary.
The Turkish Code of Obligations (TCO) determines the validity conditions of contracts, their methods of interpretation, and the sanctions to be applied in the event of a breach. Therefore, every contract must accurately reflect both the will of the parties and legal requirements.
After understanding the importance of the contract preparation process, let us examine step by step the essential elements that must be considered at every stage of this process.
1. Complete and Accurate Party Information
One of the most fundamental elements of a contract is the accurate identification of the parties.
For natural persons: Name, surname, Turkish ID number, and address information must be fully stated.
For legal entities: Company name, tax number, trade registry number, and authorized representative information must be included.
An error in party information may render the contract legally disputable or cause serious difficulties during enforcement.
2. Clear Definition of the Subject and Purpose of the Contract
When preparing a contract, one of the most important points to consider is that the subject of the contract must be clear, specific, and legally compliant.
Vague or overly broad expressions may lead to different interpretations between the parties. For example, when preparing a service contract, the type, duration, scope, and price of the service must be clearly detailed.
In this way, in a potential dispute, the question “what did the party agree to?” can be answered easily.
3. Compliance with the Principles of Balance and Equality
The fairness and balance of a contract form the basis of trust in long-term business relationships.
Provisions that impose excessive obligations on one party while granting excessive privileges to the other may become subject to annulment or termination lawsuits in the future.
Therefore, each clause should be drafted by observing mutual balance; penalty clauses, liability, termination, and payment provisions should be written objectively.
4. Compliance with Formal Requirements: Written and Notarized Contracts
Not every contract is required to be in written form; however, written form provides significant advantages in terms of proof.
Some types of contracts are legally subject to form requirements. For example:
Real estate sale contracts are not considered valid unless executed before a notary public.
Although lease contracts are not required to be in written form, notarization strengthens their legal validity.
Therefore, the formal requirements stipulated in the Turkish Code of Obligations must always be taken into account depending on the type of contract.
5. Clear Definition of the Rights and Obligations of the Parties
The obligations undertaken by the parties, as well as when and how they will be fulfilled, must be clearly stated in the clauses of the contract.
For example, instead of general expressions such as “the seller delivers the goods, the buyer makes the payment,” clear and concrete statements should be used, such as “The seller shall deliver the products via cargo within 30 days; the buyer shall pay the price via bank transfer within no later than 7 business days.”
In this way, both the time of performance and the liability in case of breach become clear.
6. Inclusion of Penalty, Termination, and Compensation Clauses
Every contract should specify how damages arising in the event of a breach will be compensated.
For this purpose, contracts should include provisions such as;
Penalty clause,
Right of termination,
Compensation conditions should be included.
A penalty clause refers to the amount that one party must pay if they act contrary to the contract. Such provisions encourage parties to fulfill their obligations and make breaches deterrent.
7. Specification of Disputes and the Competent Court
Every contract must clearly specify which court will have jurisdiction in the event of legal disputes. Generally, a clause such as “The Istanbul (Çağlayan) Courts shall have jurisdiction over any disputes arising between the parties” is preferred.
Failure to include this clause may cause the proceedings to be prolonged due to jurisdictional disputes in the future.
8. Specification of Additional and Special Conditions
In some contracts, in addition to general provisions, there may also be special conditions agreed upon by the parties. These conditions must be put in writing and approved by the parties.
Otherwise, verbal statements may not be accepted as evidence.
If there are additional protocols or clauses, they must also be drafted by making reference to the main contract.
9. The Importance of Obtaining Lawyer Support When Preparing a Contract
Contract law is a field that requires technical expertise. Even a minor wording error may affect the validity of a contract. Therefore, especially in high-risk transactions such as commercial contracts, franchise agreements, partnership protocols, or real estate sales, obtaining legal support from a contract lawyer is extremely important.
A lawyer ensures that the contract is prepared in compliance with the law, anticipates risks in advance, and protects the rights of the parties.
Conclusion: A Secure Contract Means a Strong Legal Relationship
Knowing the points to consider when preparing a contract creates a secure foundation in both personal and commercial relationships. A contract that contains clear, balanced, legally compliant, and well-defined provisions strengthens trust between the parties and prevents potential disputes.
Therefore, every contract should be regarded not merely as a text, but as a guarantee of legal security.
