Both the Court of Appeal and the Federal Court have upheld this legal situation through their multiple court decisions. Indeed, both the Court of Appeal in its decision of 16.06.2010 and the number E. 2010/1-275; K. 2010/327[ii] and the Swiss Federal Court[iii] find that, if there is a simulated transaction, the simulated agreement is not valid. 2. Relatively – the actual transaction is hidden; the parties are hiding their true agreement; Binds the parties to their effective agreement if it does not anticipate or is not intended for purposes contrary to the law, morality, etc. If the concealed contract is legal, it is absolutely applicable, provided that it has all the essential conditions: consent, object and cause. For third parties without notice, the apparent contract applies for purposes that are favorable to them. Two types of simulated transactions are accepted according to Turkish legal doctrine; “Absolute simulation” and “relative simulation”. Third parties who are aware of the simulation do not acquire a better right to the simulated contract than the initial parts of it. A contract is a simulation if, by mutual agreement, it does not express the true intention of the parties. On the other hand, the decisions of the Court of Appeal[vi] also make it clear that, if the assertion is made by third parties, the simulation can be demonstrated by all satisfactory evidence.

Article 2025. Definition; Simulation and counter-writing “D. Interpretation of contracts, simulation To decide on the nature or terms of a contract, account must be taken of the true intention and mutual agreement of the parties, neglecting any expression used either accidentally or to conceal the true intention of the parties. Article 19 of the NTCOO defines the principle of interpretation of contracts and the case where simulation or collision cannot be invoked as a defence. The title of the article is different from Article 18 of TCOO, which mentions transactions with simulation in the new title. Simulation is an exceptionally debated issue both in Turkish legal doctrine and in Turkish legal practice, while there is no other provision in the laws than Article 18 of the TCOO. Simulation is defined in Article 19 of the new Turkish Bond Legislation (“NTCOO”) number 6098, which is due to enter into force on 01.07.2012. The provision of the NTCOO mentioned below is similar to the provision of Article 18 of the Law of Obligations in Turkey (TCOO) under number 818. A person bound by the terms of a contract and the obligations set out therein may not invoke simulation as a defence against a third party who bases his right to such recognition.┬áIn addition to the ineffectiveness of the simulated agreement, the Court of Appeal has, in its order of 24.02.2010, the number E.

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