Common Mistakes in Commercial Law and How to Avoid Them

Common Mistakes in Commercial Law and How to Avoid Them

 

Commercial law forms the legal foundation for companies and business operations. However, in practice, both entrepreneurs and businesses often make mistakes that can lead to serious financial and legal consequences. In this article, we address the most common errors encountered in commercial law and offer preventive solutions.

 

 

 

1.   Verbal Agreements Instead of Written Contracts

 

Mistake: Making business deals verbally or documenting them with vague terms.

Solution:

·         Every business relationship should be formalized with a written contract.

·         Contracts must clearly include: party information, service description, delivery timelines, payment terms, penalty clauses, and dispute resolution methods.

·         Do not sign any contract without legal review.

 

 

 

2. Incomplete Company Registration Documents

 

Mistake: Providing incomplete information during trade registry or drafting articles of association that conflict with regulations.

Solution:

·         Work with a certified accountant and a legal advisor during company formation.

·         Articles of association must comply with the Turkish Commercial Code (TCC).

·         Clearly state the company name, business scope, shareholder structure, and capital details.

 

 

 

3. Unfair Competition and Trademark Violations

 

Mistake: Using business names, logos, or products similar to those of other businesses.

Solution:

·         Before registering a trademark, conduct a search via the Turkish Patent and Trademark Office.

·         Avoid deceptive advertisements and misleading promotions that could constitute unfair competition.

·         Public statements about competitors that exceed fair criticism may lead to legal issues.

 

 

 

4. Missing Legal Deadlines (Notices, Lawsuits, Collections)

 

Mistake: Missing legal deadlines when collecting commercial receivables.

Solution:

·         Monitor invoice, warning notice, and litigation deadlines carefully.

·         Follow procedures according to the Enforcement and Bankruptcy Law.

·         Manage default, statute of limitations, and litigation timelines professionally.

 

 

 

5. Poorly Drafted Partnership Agreements

 

Mistake: Forming company partnerships without clear, legally binding written agreements.

Solution:

·         Partnership agreements must define roles, voting rights, profit distribution, and exit clauses.

·         Determine in advance the resolution mechanisms for disputes (e.g., mediation or arbitration).

 

 

 

Conclusion: Preventing Legal Mistakes Starts with Awareness

 

In the fast-paced world of business, a minor legal mistake can have major consequences. Therefore:

·         Prepare contracts with precision,

·         Ensure official documents are complete,

·         Follow trademark and competition laws,

·         Manage receivables and legal actions within legal timeframes.

Regularly consulting with a legal advisor will help businesses avoid financial losses and legal risks.

 

 

 

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