Definition and Elements Clause Samples

Definition and Elements. In practice, especially in Turkey, there are numerous types of construction agreements relying on various terms and principles by virtue of the “freedom of contract” principle governing law of obligations. Construction for allotment agreement is the most common one among agreements that diverges from traditional construction agreements.1 On that note, a traditional construction agreement can be specified as an agreement, pursuant to which the contractor undertakes to construct a specific structure whereas the client undertakes to pay a certain amount in consideration thereto. In the light of the foregoing definition by which parties’ duties in a traditional construction agreement are elaborated, two basic elements are revealed, construction of a specific structure and making a payment for it. When the parties mutually agree on those basic elements, which constitutes the fundamental aspects of a construction agreement, the agreement is founded and inures effect. In a construction agreement, construction of a specific structure is the characteristic (main) performance and this is the contractor’s responsibility, scope of which is elaborated through agreement. On the other hand, the client’s responsibility is to make the agreed payment to the contractor, which is remuneration for the work undertaken by the contractor. In a construction for allotment agreement, the client (land owner) promises to transfer a certain land share (allotment) to the contractor whereas the contractor undertakes to construct the agreed independent sections to the land owner.2