Sellers'sLiability for Defects in Commercial Sales

Sales contracts are divided into a few groups in terms of issuance and applicable rules. Commercial sales contracts differ from ordinary sales contracts, as contracts made between merchants, in terms of issuance, subject, parties, and particularly applicable terms. The rules to apply in case of defective performance of the obligations arising from commercial sales contracts are same with the rules to apply in such circumstances in ordinary sales in terms of conditions of obligations and the consequences. Yet, seller's liability for defect has to be set forth in detail not only in Turkish Code of Obligations but also in Turkish Commercial Code for the characteristics of its subject and parties involved and due to the fact that a commercial sales contract concerns sales as one of the most significant transactions in business life. Turkish Commercial Code lacks a definition for defect. Nevertheless, subparagraphs a and c of paragraph 1 of Article 23 of Turkish Commercial Code includes express and implied provisions demonstrating that the provisions of Turkish Code of Obligations shall be applicable where there are gaps in the Commercial Code. As such, a defect has to be defined as any material, economic or statutory element that diminishes or eliminates the utilization of the product. In this present thesis, we study seller's liability for defective sales, and we direct some criticism to the lack of a definitive remedy in certain cases in terms of liability for defect. While looking into seller's liability for defect in the scope of the subject, we not only refer to the provisions of the Turkish Commercial Code but also the provisions of United Nations Convention on "Sales of Goods" (CISG) as well as Code of Obligations and the Law on Protection of the Consumer.