Hardship and contract adaptation

Under Turkish law, contract adaptation allows a court to adjust the terms of a contract when extraordinary, unforeseeable developments arising after its conclusion make performance excessively burdensome for one party. It is a good-faith exception to the principle that contracts must be honoured as agreed.

Adaptation requires that the change was not caused by the debtor, could not have been foreseen at the time of contracting, and has severely upset the balance between the parties' obligations. The debtor must not yet have performed, or must have performed while reserving its rights. Foreign-currency debts and long-term leases during economic crises are typical subjects of such claims.

If the court finds adaptation impossible, the debtor may withdraw from the contract or, in continuing relationships, terminate it for the future.