Definition and Elements of Installment Sales Contracts for Consumers Installment sales contracts are contracts in which the seller or provider undertakes the delivery of the goods or the performance of the service, and the consumer pays the price in parts (TKHK. Article 17/I). The delivery of the goods or the performance of the service may be made at the time the contract is established or at a later time. It does not matter at what intervals the payment is made. If the payment is made in parts by the consumer, then it is a sale in installments. Elements of installment sales for consumers: Delivery of the sold item to the buyer before the payment of the sales price (classical-ordinary installment sales) or after the partial payment of the price (prepaid installment sales) Delivery of the sales price with partial payments.

• The subject of the sale in installments is movables, rights or service acts.

• the dominant opinion is that real estate is not suitable for sale in installments; However, since consumer contracts and real estate for residential and holiday purposes are also included in the concept of goods in the TKHK, real estate can also be subject to sale in installments and TKHK.m.17 et al. with TBK 253 et seq. provisions must be applied.

• financed installment sales contracts. In accordance with the provision of TBK 263/II, if a loan is given to the buyer/consumer in order to finance certain sales transactions by agreement with the lender, that is, in case of a tied loan transaction, the provisions of installment sales will find application by analogy. The buyer pays the installments in classical installment sales. While paying to the seller, in financed installment sales, the lender pays the loan installments to the 3rd party. In the doctrine, such transactions are called financed installment sales contracts, in which the third party that finances the buyer is the lender (bank) who agrees with the seller/supplier. There is a three-cornered legal relationship. Framework contract between the seller and the bank, a sales contract between the seller and the buyer (consumer) and finally a loan (credit) agreement between the buyer and the lender (bank).

• Procedures and principles regarding the mandatory content of the installment sales contract, the rights and obligations of the consumer, the seller and the provider, the right of withdrawal, early payment and other issues are determined by the regulation. This Regulation is the “Regulation on Installment Sales Contracts”. (TSSHY- RG.14.1.2015, S:29236).

• Provisions regarding sales in installments also apply to financial leasing agreements in which the consumer is obliged to acquire ownership of a good at the end of the rental period (TKHK, Article 17/II). For the consumer, there is no difference between whether the goods subject to financial leasing are movable or immovable property for housing and holiday purposes. ; As long as the financial leasing agreement, which includes the right/obligation to acquire ownership of a property at the end of the rental period, is signed as a consumer. Such contracts can be called consumer leasing.

• The subject of consumer leasing is consumer goods. Investment goods are not suitable for consumer leasing; since the purchase of such goods requires commercial or professional purposes, their status as a consumer will not be in question.

• The right of withdrawal cannot be exercised in financial leasing transactions in which the consumer finds the seller (TKHK art.18/IV; TSSHY.m.7/VII).

• An installment sales contract is not valid unless it is established in writing. A seller or supplier who has not concluded a valid contract cannot subsequently claim the invalidity of the contract to the detriment of the consumer (TKHK, Article 17/III). It must be acknowledged that the consumer may claim this invalidity. The rule regarding the buyer’s defenses stipulated in TBK 257 should also be applied in installment sales to consumers.

• Legal Nature of the Right of Withdrawal

• In installment sales contracts for consumers, the consumer has the right to withdraw from the installment sales contract within 14 days without giving any reason and without paying any penalty (TKHK. Article 18/I).

• Although the nature of the right of withdrawal is controversial, in our opinion, it is a special right that terminates a contract without giving any justification and without the consumer’s obligation to pay compensation, has a direct disruptive effect on both the debtor and savings transaction, creates disruptive innovation, and is exercised with the necessary declaration of will.

• The exercise of the right of withdrawal is bound to a 14-day period (TKHK. art. 18/I; TSSHY.in Article 7/I), and the starting point of this period is determined as follows according to TSSHY.in Article 7/II: In contracts regarding the delivery of goods, the consumer or the third party determined by the consumer receives the goods, but the consumer can also exercise his right of withdrawal within the period from the establishment of the contract to the delivery of the goods. is applied.”

• “The notification regarding the exercise of the right of withdrawal must be sent to the seller or provider in writing or via a permanent data recorder within the right of withdrawal period.