Breach of Lease Agreement and Legal Consequences
In the first article of this series, we touched upon several key points to consider when drafting a lease agreement. Now, we will continue the series by discussing the sanctions that may be applied in response to a tenant’s breach of contract.
The lease relationship is a type of contract that imposes obligations on both the landlord and the tenant. The consequences of a tenant’s breach of the lease agreement are determined within the framework of the Turkish Code of Obligations and the precedents set by the Court of Cassation. In this article, we will examine the cases of breach of a lease agreement and the legal sanctions applicable in such instances.
What Constitutes a Breach of Contract?
According to Article 316 of the Turkish Code of Obligations (No. 6098), “The tenant is obliged to use the leased property with due care and to show necessary respect to the individuals residing in the property and to the neighbors.”
This provision outlines the general framework regarding how the tenant should use the leased property. The tenant must not damage the physical structure of the property and must also be mindful of neighborly relations. However, the limits of this duty of care may not always be clear. This is where the Court of Cassation’s decisions come into play.
The Court of Cassation defines a breach of contract as follows: “In a lawsuit filed based on breach of contract, an eviction order can only be granted if the breach is significant and directly related to the use of the leased property itself.” (3rd Civil Chamber, 16.1.2018, 8658-173)
It is important to note here that not all behaviors constituting a breach of contract will necessarily result in eviction. The breach must be significant and directly related to the use of the leased property. Otherwise, sanctions other than eviction may be applied.
Breach of Contract and Eviction: When is an Eviction Order Granted?
A tenant’s breach of the lease agreement does not always result in eviction. Specifically, the failure to fulfill certain obligations outlined in the lease agreement may not be considered a breach under Article 316 of the Turkish Code of Obligations. However, the Court of Cassation emphasizes that for eviction to be granted, the breach must be directly related to the tenant’s use of the property.
“In a lawsuit filed based on breach of contract, an eviction order can only be granted if the breach is significant and directly related to the use of the leased property itself. The failure of the tenant to fulfill other contractual obligations does not result in eviction for breach of contract.” (3rd Civil Chamber, 4.5.2023, 8450-1287)
At this point, the failure to pay rent is considered a separate issue. The non-payment of rent constitutes a reason for eviction based on default, rather than a breach of contract. (3rd Civil Chamber, 2.5.2023, 11-1196) Therefore, distinguishing between default and breach of contract is critical in lease relationships to avoid confusion in practice.
Court of Cassation Precedents Regarding Breach of Contract
The Court of Cassation has ruled that a breach of contract must be significant and directly related to the use of the leased property for an eviction order to be granted. Below are some examples of situations considered by the Court of Cassation to be breaches of contract:
- Making alterations to the property without permission (3rd Civil Chamber, 24.5.2023, 1887-1595)
- “The breach of food safety requirements and hygiene rules is considered a breach of contract… these actions do not constitute gross misuse, and a notice must be sent to the defendant.” (3rd Civil Chamber, 4.5.2023, 8450-1287)
- Subleasing without permission from the landlord, as prohibited by the contract (3rd Civil Chamber, 25.12.2018, 6650-13235)
In these cases, the tenant’s manner of using the property is in direct violation of the contractual provisions, making eviction a likely outcome.
Notice Requirement and Gross Misuse of the Property
In certain cases, the tenant’s breach of the agreement can lead to eviction without the need for a notice period. This is especially true for situations categorized as gross misuse.
In residential and commercial property leases, gross misuse does not require a notice period. In leases for agricultural products or non-residential leases, no 30-day period needs to be granted: “No notice is required in cases of breach of contract in agricultural leases.” (3rd Civil Chamber, 14.3.2023, 8506-591)
“Considering the factual and legal reasons, the accusations between the plaintiff and defendant company officials, the criminal investigation files, the determination that the leased property was grossly misused in violation of the duty of care, and the acknowledgment of violations of contractual provisions, there is gross misuse of the leased property.” (3rd Civil Chamber, 13.12.2023, 5110-3695)
Gross misuse includes situations where the tenant excessively damages the leased property, causes harm to neighbors, or uses the property in a manner that severely damages its condition. In such instances, eviction is often the result without the need for prior notice.
Conclusion: Breaches of Lease Agreements and Legal Sanctions
A tenant’s breach of a lease agreement does not always lead to eviction. However, the precedents set by the Court of Cassation make it clear that there are specific conditions under which eviction can be ordered due to a breach of contract. For eviction to occur, the tenant’s behavior must be significant and directly related to the use of the leased property. In some cases, a notice period may be necessary, while in cases of gross misuse, this process can be bypassed.
To ensure legal security in lease relationships, it is crucial to act in accordance with the provisions of the lease agreement and the relevant rulings of the Court of Cassation. Landlords can protect their rights more effectively with this knowledge, while tenants should remain fully aware of their responsibilities.