Deferral agreement

An agreement to defer the due date is an amendment agreement that advances the due date of the non-due debt or eliminates the due date of the due debt. Since it directly changes the time of performance of the debt, the deferral agreement is in the nature of a disposal agreement. Turkish, German and Swiss laws do not include the deferral contract in detail. In this respect, it is an innominate agreement. By concluding a deferral agreement, the debtor, who cannot fulfill his debt in the agreed performance time, is given an extra time to fulfill his debt. Although the conclusion of the deferral agreement seems to be in favor of the debtor, it is often in the interest of the creditor as well. The debtor can improve his financial situation and be able to fulfill his debt during the postponement period. The creditor obtains the receivable more effortlessly without having to deal with any executing process. The deferral agreement can be concluded before or after the debt becomes due. If the debtor defaults, the deferral agreement concluded after due date cancels the default. The creditor cannot claim the debt from the debtor during the postponement period. Thus, the debtor is saved from facing the legal consequences of the debtor's default thanks to the deferral agreement.