Assignment of Claims and Transfer of Debt in Turkish Law

Introduction

In contractual relationships, rights and obligations do not always remain with the original parties throughout the entire duration of the contract. In many situations, parties may wish to transfer their rights or obligations to another person. Turkish law recognizes this possibility through the legal mechanisms known as assignment of claims (alacağın devri) and transfer of debt (borcun nakli).

These mechanisms allow contractual relationships to adapt to changing commercial and financial circumstances. Businesses frequently use them in commercial transactions such as financing arrangements, corporate restructuring, and asset transfers.

The rules governing assignment of claims and transfer of debt are primarily regulated by the Turkish Code of Obligations (Türk Borçlar Kanunu – TBK). These provisions establish the legal framework that allows claims and debts to be transferred while protecting the interests of all parties involved.

This article explains the assignment of claims and transfer of debt under Turkish law, including their legal requirements, effects, and practical significance.


Assignment of Claims (Alacağın Devri)

The assignment of claims refers to the transfer of a creditor’s right to demand performance from the debtor to another person.

In this situation:

  • the assignor is the original creditor transferring the claim
  • the assignee is the new creditor receiving the claim
  • the debtor remains the same person responsible for fulfilling the obligation

Through assignment, the assignee becomes the new creditor and gains the right to demand performance from the debtor.

This mechanism allows claims to circulate in economic transactions.


Legal Basis of Assignment of Claims

Assignment of claims is regulated by Articles 183–194 of the Turkish Code of Obligations.

According to Turkish law, claims may generally be transferred without the consent of the debtor unless:

  • the contract prohibits assignment
  • the nature of the obligation prevents assignment
  • the law restricts assignment

This rule facilitates the transfer of financial rights and promotes flexibility in commercial transactions.


Formal Requirements for Assignment

Under Turkish law, the assignment of a claim must generally be made in written form.

This written form requirement ensures legal certainty and provides evidence of the transfer.

The assignment agreement must clearly identify:

  • the original creditor
  • the new creditor
  • the debtor
  • the claim being transferred

Failure to comply with the written form requirement may render the assignment invalid.


Effects of Assignment

Once a claim is assigned, the assignee becomes the new creditor and acquires all rights associated with the claim.

This includes:

  • the right to demand payment or performance
  • the right to initiate legal proceedings against the debtor
  • any accessory rights attached to the claim

Accessory rights may include guarantees, collateral rights, or interest claims.

However, the debtor’s legal position generally remains unchanged.


Debtor’s Rights and Defenses

Although the debtor does not need to approve the assignment, Turkish law protects the debtor’s legal position.

The debtor may raise the same defenses against the assignee that they could have raised against the original creditor.

For example, the debtor may argue that:

  • the debt has already been paid
  • the obligation has expired
  • the claim is invalid

This rule ensures that the debtor is not placed in a worse legal position due to the assignment.


Transfer of Debt (Borcun Nakli)

The transfer of debt refers to the transfer of a debtor’s obligation to another person.

In this situation:

  • the original debtor transfers the obligation
  • the new debtor assumes the obligation
  • the creditor remains the same

Unlike assignment of claims, the transfer of debt generally requires the consent of the creditor.

This requirement protects the creditor’s interests because the creditor must agree to accept the new debtor.


Types of Debt Transfer

Turkish law recognizes two main types of debt transfer.

Internal Debt Assumption

In an internal debt assumption, the agreement occurs between the original debtor and the new debtor.

However, this agreement does not directly affect the creditor unless the creditor gives consent.

The original debtor may still remain liable toward the creditor until approval is obtained.


External Debt Assumption

In an external debt assumption, the creditor agrees to accept the new debtor.

Once the creditor gives consent, the new debtor becomes responsible for fulfilling the obligation.

At this stage, the original debtor is generally released from liability.

This type of transfer fully replaces the debtor in the contractual relationship.


Differences Between Assignment and Debt Transfer

Although assignment of claims and transfer of debt both involve the transfer of contractual positions, they differ in important ways.

Assignment of claims:

  • transfers creditor rights
  • does not require debtor consent
  • requires written form

Transfer of debt:

  • transfers debtor obligations
  • generally requires creditor consent
  • changes the person responsible for performing the obligation

These differences reflect the need to protect the interests of the debtor and creditor in different ways.


Practical Importance in Commercial Transactions

Assignment of claims and transfer of debt play a significant role in modern commercial transactions.

Businesses often use these mechanisms in situations such as:

  • factoring agreements
  • loan transfers
  • corporate mergers and acquisitions
  • restructuring of financial obligations

For example, banks frequently purchase receivables through factoring arrangements, which involve the assignment of claims.

Similarly, corporate restructuring may involve transferring debts to another entity.

These mechanisms allow financial rights and obligations to be reorganized efficiently.


Risks and Legal Considerations

Although assignment and debt transfer provide flexibility, they may also create legal risks if not handled properly.

Potential risks include:

  • unclear identification of the transferred claim
  • lack of required written documentation
  • failure to obtain creditor consent in debt transfers

To avoid these risks, parties should ensure that transfer agreements are carefully drafted and comply with legal requirements.

Professional legal advice is often recommended for complex transactions.


Conclusion

Assignment of claims and transfer of debt are important legal mechanisms that allow contractual rights and obligations to be transferred to third parties.

Under Turkish law, these mechanisms are regulated by the Turkish Code of Obligations and play a crucial role in commercial and financial transactions.

Assignment of claims allows creditors to transfer their rights without requiring debtor consent, while transfer of debt generally requires creditor approval because it affects the person responsible for fulfilling the obligation.

Understanding these legal mechanisms is essential for businesses, investors, and legal professionals involved in complex contractual relationships.

By applying these rules correctly, parties can ensure that contractual rights and obligations are transferred legally and efficiently.

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