The list of these elements was given in order to give you an idea of how difficult (and sometimes how easy) it is to draft a promissory note. However, if the promissory note lacks one or more of these elements, then it may be invalid. Lacking one or more of these elements (depending on which element it is lacking), though, does not necessarily mean that the claim is totally null and void. In such case, the claimant -- beneficiary of the promissory note -- now has to follow a lengthy process to collect his/her money. The promissory note now serves only as evidence that will be evaluated by a court, and the legal action based on that evidence can be contested easily.I have received a letter from the concerned relatives of an expat who has been given a promissory note in exchange of her investment in partnership with locals. The letter reads as follows (it is heavily modified, but the idea still remains): “Dear Mr. Cektir, My sister moved to Turkey a few years ago, with enough money to enjoy her young retirement. However, a couple of years ago, she went into business with a Turkish man whom I wish not to name at this present time. They set up a company and bought a local supermarket, with my sister’s money, and my sister has been paying out ever since. Originally, there was an agreement, in which 25 percent of the value of the business was handed over to the Turkish man, and in return, a ‘promissory note’ was issued by the Turkish man to work the local supermarket for five years. Now I have just learnt that my dad has been persuaded to hand over the remaining 75 percent to the Turkish man’s sister, again with a ‘promissory note.’ So far my sister has spent over TL 700,000 on this business and now is literally penniless, with the Turkish man wanting even more for investment, which my sister will have to borrow to give him. The promissory notes are both based on the Turkish man paying the value of the business in five years time. Could you let me know if ‘promissory notes’ are considered legal documents under Turkish law, and although they come into effect in five years time -- can anything be done before that time? Can you suggest anything that I or my siblings can do about the matter? Many thanks, Judy”
First, I would like to underline that there are some exemptions and subtleties regarding the validity of a promissory note, so please do not take this rough information as a legal guide and please consult a lawyer for further information.
As explained in detail, the first thing to do in this case is to examine the promissory notes and see whether these promissory notes are valid or not. If the promissory note is valid, this shall mean that it is an enforceable legal document and your sister can follow the debtor through the court process and collect the amount cited on the promissory note.
A promissory note can also be claimed before its due date if certain conditions are met, such as the debtor seeming likely to go bankrupt or if there is other significant evidence showing that the debtor will not be able to pay the promissory note on the due date. Another method is to cash the promissory note through a financial institution, but in such a case, your sister will become a guarantor for the payment of the promissory note.
Convincing your sister
Your question sounds like your sister is usually not careful about her business or has capacity problems due a psychological issue. If you are thinking of taking legal action without the interference or consent of your sister, then there needs to be a court-appointed custodian authorized to act on behalf of your sister. If this is not the case, the promissory notes can be enforced by a lawyer in Turkey.
NOTE: Berk Çektir is a licensed attorney at law and available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com The names of the readers are disclosed only upon written approval of the sender.DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner.
