Non-Compete Obligation
One of the most important debts of the agency is that it is subject to the prohibition of competition. As a matter of principle, the agency cannot act as an agency for the accounts of more than one commercial business owner competing with each other in the same place or region. That is, considering the monopoly right while the contract is in progress, the other side of the coin is this. The agency cannot work with another rival client unless there is a written agreement between them for the same trade branch in the region to which it is assigned.
Obligation to See His Client’s Business and Protect His Interests
The scope of the works to be performed by the agency is mainly determined by the agency agreements. For example, the agency may be assigned tasks such as keeping a warehouse and making advertisements. The works of the contracted agent may not be counted or limited one by one. In this case, it is said that the agency’s debt consists, as a rule, of acting as an intermediary in the transactions that fall within the scope of the commercial enterprise or performing these transactions on behalf of the client. In principle, the agency is not obliged to carry out a certain number of intermediary activities, to make a contract, and if it is a sales agent, to sell a certain amount of the client’s goods, unless otherwise agreed in the contract.
For example, agencies are given quotas. It is said that you must sell X cars annually, otherwise you will get negative points.
C) Agent’s debts I – Generally ARTICLE 109-
(1) The agency is obliged to carry out the affairs of its client and protect its interests within the region and trade branch left to him pursuant to the contract.
(2) If the agency does not prove that it is faultless, it is especially responsible for the damages suffered by the goods or goods that it is keeping for the account of its client.
In addition, the agent must protect his client’s interests while making efforts to sign or mediate legal proceedings. For example, the agency should control the conditions in the market in the field in which it operates, and take initiatives to find new customers.
In addition, the agency must know and observe the financial situation of the market and the customer in the region of the declarations that third parties are authorized to accept, and the transactions made by them.
The agency notifies the client of the name of the person who has made a contract with him, the terms of the contract, and the type of guarantee he has received. The agency should inform the client of this information in time. Otherwise, he will be liable to his client for any damages that may arise.
He is also obliged to comply with his client’s instructions. The agency is an independent merchant assistant. However, there is a common interest. Being independent within the framework of this partnership does not mean that he will ignore the client’s instructions. In any case, the client’s compliance with the instructions does not harm his independence. It can be considered as an extension of the obligation to inform. In this context, the agency may delay the transaction until it receives an order on matters that do not have a clear instruction from the client. In the context of protecting the interests of the client, he is sometimes obliged to take measures to protect his interests. TTK111/1-2:
III – Measures ARTICLE 111-
(1) If there are indications that the goods received by the agent for the account of the client are damaged during the transport, in order to guarantee the client’s right to file a lawsuit against the carrier, the agent shall have the damage determined and take other necessary measures, to protect the goods as much as possible or if there is a danger of it being destroyed completely. Pursuant to Article 108 of the Law, he is obliged to have it sold with the permission of the competent court and to inform his client about the situation without delay. Otherwise, he will indemnify the damage caused by his negligence.
(2) If the goods sent to the agency for sale are perishable or subject to changes that will decrease their value, and if the time is not suitable to receive instructions from the client or the client is delayed in giving permission, the agent is authorized to sell the goods with the permission of the competent court, pursuant to Article 108 of the Turkish Code of Obligations, and if the client’s interests require it. mandatory.
If the goods sent to the agency are perishable or the value of which may decrease immediately, the agent must protect them if the time is not available to receive instructions from the client. The agency will take the initiative, sell this item with the permission of the court and collect the money.
Obligation to Deliver the Client’s Money to the Client
IV – Debt to pay ARTICLE 112-
(1) If the agent is obliged to send or deliver the money belonging to his client but fails to do so, he is obliged to pay interest and, if necessary, provide additional compensation from the date on which the obligation arises. In this case, even the so-called transcendental harm may come to the fore.
