Commercial Transaction

The concept of commercial transaction determines which transactions are governed by commercial law. Under TCC Article 3, all transactions and acts relating to matters regulated by the Code or to a commercial enterprise are commercial transactions.

Presumption (TCC Article 19)

• A merchant’s debts are presumed commercial.
• A natural-person merchant’s debt is deemed ordinary if, at the time of the transaction, the merchant clearly informed the other party that it was unrelated to the business, or if the circumstances do not allow it to be treated as commercial — for example a merchant buying furniture for their home.
• Contracts that are commercial for only one party are deemed commercial for the other, unless the law provides otherwise.

Consequences

• Interest: In commercial matters interest rates may be freely agreed (TCC Article 8(1)). For default interest in commercial matters see Advance Interest Rate.
• Compound interest: Adding interest to principal, at intervals of no less than three months, is valid only in current accounts and loans that are commercial for both parties (TCC Article 8(2)).
• Late payment: Special default rules apply to the supply of goods and services between businesses; see Late Payment in Commercial Transactions.
• Joint and several liability: Persons jointly indebted under a commercial transaction are jointly and severally liable unless otherwise provided (TCC Article 7).
• Competent court: Disputes concerning both parties’ commercial enterprises are commercial cases; see Commercial Case and Commercial Court.

Consumer Transactions

Where one party is a consumer, the protective provisions of Consumer Protection Law No. 6502 take priority; commercial rules cannot be applied to the consumer’s detriment even if the transaction is commercial for the business.