Default (temerrüt)

Under Turkish law, default (temerrüt) is the legal state of delay a debtor enters when a due and demandable obligation is not performed. As a rule the creditor must first serve a demand; however, if the contract fixes a definite date for performance, default occurs automatically once that date passes.

The best-known consequence is default interest on monetary debts, accruing for the period of delay. The creditor may also claim additional damages caused by the delay and, in bilateral contracts, may grant a final period for performance and then choose between compensation and withdrawal from the contract.

Default is not limited to debtors: a creditor who refuses duly tendered performance without justification also falls into default and bears the resulting consequences.