THE LAW APPLICABLE TO THE FORM IN THE TERMS OF VALIDITY OF BILLS OF EXCHANGE: CITIZENSHIP FACTOR IN THE COMPLEMENTARY RULE

20673

There is a provision in the Turkish Commercial Code (TTK) for the determination of the law applicable to the form of a declaration on bills of exchange which contains a foreign element. In accordance with Article 767/1 of the TTK, the form of a declaration on a bill of exchange (drawn, endorsement, acceptance etc.) is determined according to the law of the country in whose territory the declaration was signed. The same rule is also applicable for a promissory note and a cheque pursuant to the TTK. However, if this rule applies alone without providing any flexibility for the form of declaration on a bill of exchange, then it may cause some problems. Complementary rules in Article 767 of the TTK have been regulated in order to prevent potential problems that may arise. In this paper, the wording of Article 767/3 of the TTK -- a declaration on a bill of exchange given by one Turkish citizen abroad is valid in relation to another Turkish citizen in Turkey provided it satisfies the formal requirements laid down by Turkish Law-- will be critically examined in order to understand whether it is broad enough to cover corporate persons and also fulfill the need of the 21st Century.

751

Conflict of Laws , Applicable Law , Bills of Exchange , Form , Complementary Rules , Citizenship

Hukuk Araştırmaları Dergisi

768

Hukuk Araştırmaları Dergisi