Excess damage and the recoverability of currency depreciation as excess damage

This master's thesis examines the concept of "excess damage" arising from late payment of monetary debts and the effects of inflation on such damage. Excess damage refers to the damage incurred by the creditor in excess of default interest when the debtor defaults and is regulated under Article 122 of the Turkish Code of Obligations. The study details the legal nature of excess damages (which are considered positive damages) and their differences from similar legal institutions such as penal clauses and delay damages. Additionally, the definition and functions of money, particularly the principle of nominal value, are evaluated in terms of inflation's role in the formation of excess damages. The thesis examines common items of excess damages, such as costs incurred in pursuing the claim, damages arising from the breach of other legal relationships, and expenses incurred to replace the unpaid claim. It also reviews doctrinal debates and various judicial decisions regarding whether the loss of value of money can be considered excess damages. As a result, it was concluded that there is no factual presumption regarding the valuation of claims against inflation and, therefore, it is not possible to prove excess damages with factual presumptions. However, in terms of fixed-value debts, the creditor has a claim that is free from inflationary effects. Pursuant to the fixed value principle applicable to compensation claims, the creditor may demand the current value of the compensation without engaging in any additional proof activities.