Yacht-Building Contracts in Turkish Law


The Legal Distinction Between Yachts and Ships

Notions of ships and yachts, while easily distinguishable in practice, appear legally interchangeable. Despite the technical differences between “yacht” and “ship,” these differences are crucial for yacht building contracts and the buyer’s justified expectations. This is where the expertise of a Turkish yacht lawyer becomes invaluable, ensuring that the legal nuances are fully understood and respected.

Turkey’s Pioneering Role in Yacht Construction

This book aims to consolidate existing information and resources about ships and shipbuilding contracts, placing Turkey as a leading figure in the yacht building sector. Considering Turkey’s significant role in the global yachting sector and the yacht’s impact on Turkey’s economy, it becomes clear why yacht building contracts deserve a separate examination from shipbuilding contracts. A Turkish maritime law firm, with its deep understanding of the local and international legal landscapes, can provide essential guidance in navigating these complex contracts.

The book titled 'Defect in Yacht Building Contracts' written by lawyer Barış Erkan Çelebi
The book titled 'Defect in Yacht Building Contracts' written by lawyer Barış Erkan Çelebi.

Defining Yachts and Their Contracts

The book covers several key areas: the definition of a yacht, the intricacies of a yacht building contract, and the specific issue of defects within these contracts. While touching on aspects of the independent contractor agreement, the focus narrows to the liability against defects, a critical concern for all parties involved. References to ships serve to illuminate the yacht-specific discussions, ensuring a comprehensive understanding tailored to yachts.

Distinguishing Yachts from Ships

In legal terms, “yacht” and “ship” are distinguished not only technically but also in their application within Turkish Maritime Law. A yacht, designed for personal use and pleasure, is defined against the broader category of ships within the Turkish Commercial Code. However, the Turkish Code of International Registry of Ships and related maritime and building contracts specifically cater to yachts, highlighting the specialized legal knowledge offered by Turkish yacht lawyers.

Independent Contractor Agreements: Yacht Building Contracts

Yacht and shipbuilding contracts are grounded in the principle of independent contractor agreements. These agreements involve the shipbuilder (contractor) and the employer (yacht buyer), with a Turkish maritime law firm often playing a pivotal role in defining the obligations under these agreements. Despite the general applicability of contractual obligations, yacht building contracts entail unique technicalities, governed often by foreign laws and containing warranty clauses that are distinct from other contracts.

Validity and Limitations of Contractual Obligations

The book also delves into the validity of contractual obligations under Turkish law, addressing the limitations imposed by concerns for public order, ethics, and protection of the weaker party. This exploration is crucial, as it examines the extent to which the principle of contract freedom, prevalent in Anglo-Saxon legal systems, applies within Turkey. The discussion is enriched by the perspectives of a Turkish yacht lawyer, who navigates through the controversial validity of clauses limiting shipbuilder liability.

Addressing Defects in Yacht Building Contracts

Finally, the book comprehensively examines defects in yacht building contracts, types of defects, occurrences, and the resultant rights and obligations. It differentiates between legal rights available to the employer, such as claiming discounts or damages, and contractual rights like liquidated damages. This section underscores the importance of engaging with a reputable Turkish maritime law firm that is expert on yachts to navigate the complex legal and contractual landscape effectively. Turkish Yacht Lawyer Baris Erkan Celebi authored a book on Yacht-Building Contracts.