CONSEQUENCES OF DOUBLE BROKERAGE ACTIVITY IN CASE OF BROKERAGE CONTRACT OF NEGOTIATION IN SWISS AND TURKISH LAW

Brokerage contract is defined as a contract whereby the broker is instructed to alert the principal to an opportunity to conclude a contract or to facilitate the conclusion of a contract in exchange of a fee according to the article 520 of the Turkish Code of Obligations. As a result of this definition there are two kind of brokerage activity such as the brokerage activity where the broker is instructed to indicate the principal the opportunity to conclude a contract id. est. brokerage of indication and the brokerage activity where the broker is instructed to negotiate the conclusion of a contract id.est brokerage of negotiation. The contract which the broker is instructed to alert the principal to conclude or to facilitate the conclusion between the principal and the third party is defined as principal contract. If the broker acts simultaneously for the both party of principal contract, the activity of the broker is called double brokerage. The double brokerage may not cause any conflict of interests between the both party of the principal contract where the broker acts in order to indicate to each party the opportunity to conclude a contract according to Swiss case law and doctrine. However the situation differs whereby the broker acts in order to negotiate the conclusion of the principal contract for each party as a double broker. The aim of this study is to examine first the brokerage contract of negotiation and then the cases which raises the conflict of interest between the both party of principal contract in case of double brokerage referring also to the sanction of the conflict of interests