21 Sep CONSEQUENCES OF DEBTOR DEFAULT
GENERAL RESULTS
1) FULL PERFORMANCE AND DELAY COMPENSATION
The creditor, who still has an interest in the performance of the debt, asks the debtor for the same performance and compensation for the damage incurred due to the late performance of the debt. The debtor who defaults is obliged to eliminate the damage suffered by the creditor due to the late performance of the debt, unless he proves that he has no fault in defaulting. (TBK article.118)
2) RESPONSIBILITY FOR THE UNEXPECTED
A debtor who defaults is liable for damage caused by an unexpected situation(TBK article 119/1). The borrower can get rid of this responsibility by proving that he has no fault in defaulting or that the damage would have arisen even if he had fulfilled the debt on time. (TBK article.119/2)
RESULTS ON MONEY DEBTS
1) DEFAULT INTEREST:
Even if the creditor has not suffered any damage, he can claim compensation for the damage he has suffered due to the fact that he was deprived of the money during the default period. Unlike the delay compensation, the default interest also does not require the defect condition. The borrower is obliged to pay the interest on the default, whether it is defective or not, in case of default.
2) TRANSCENDENTAL HARM(TOTAL HARM):
If the creditor has suffered a loss exceeding the default interest, the debtor is also obliged to eliminate this loss unless he proves that he has no defects(TBK article.122/I). If the amount of damage exceeding the default interest can be determined in the case under consideration, at the request of the plaintiff, the judge also decides the amount of this damage when making a decision on the merits(TBK article.122/II).
RESULTS OF CONTINUOUS-TERM CONTRACTS
In case of default of the debtor, the creditor may request compensation for performance and delay , as well as to terminate the contract and ask for compensation for damages incurred due to the expiration of the contract before the term of the contract (TBK article.126).
SPECIAL RESULTS ON CONTRACTS THAT IMPOSE MUTUAL DEBTS (SELECTIVE RIGHTS)
1) FULL PERFORMANCE AND DELAY COMPENSATION:
If the debtor in default does not repay the debt within the given period, or if there is a situation that does not require the issuance of a period, the creditor may always request the exact performance of the debt and compensation for the damage caused by the delay. ( TBK article.125/I).
2) REFUSAL TO PERFORM IN THE SAME WAY AND COMPENSATION FOR SIGNIFICANT DAMAGE:
The creditor may immediately request compensation for damage caused by non-performance of the debt by notifying that he has waived his right to demand compensation for performance and delay in the same way. ( TBK article.125/II)
3) RETURN FROM THE CONTRACT AND COMPENSATION FOR LOSS OF INTEREST:
The creditor can return from the contract. In the event of a return from the contract, the parties mutually release themselves from the obligation to perform and may request the return of their previously performed actions. In this case, if the borrower cannot prove that he has no fault in defaulting, the creditor may also request that the damage he has suffered due to the cancellation of the contract be eliminated( TBK article.125/III).
• The creditor’s CPC is article.125.he must immediately notify the borrower at the end of an appropriate period of time which of the electoral rights he will exercise. Otherwise, it is accepted that the creditor requests compensation for performance and delay in ordinary works in the same way; in certain term and commercial sales, if not specified otherwise, he refuses to perform in the same way and wants to cover the significant loss.
No Comments