Concepts of Notice and Grace Period in Default of the Debtor

Abstract

Article 117/I of the TCO (Turkish Code of Obligations) clearly regulates that the debtor of a debt due will fall into default with the notice of the creditor. The notice, which constitutes one of the general conditions of the debtor’s default and the determination of the grace period, which constitutes the prerequisite for the exercise of alternative rights in bilateral contracts are different institutions. While the notice is important in terms of determining the exact time of performance; the determination of the grace period, without specifying a new time of performance, almost constitutes a prerequisite for the exercise of alternative rights within the framework of article 123 of the TCO. While the creditor, who does not want to enjoy the alternative rights in a bilateral contract, has the opportunity to put the debtor in default by only giving a notice, in which case, his request will be limited to the specific performance and the compensation for delay in performance, and will be deprived of the alternative rights granted to him. In that case, both declarations will have differences in terms of parties, content, form, time and consequences.