THE LEGAL CHARACTER OF OFFICE CONTRACTS
Office contracts are generally used to describe the relationship between office providers, office users, and office workers. The office user conclude a contract with the office provider to meet the following needs such as office space requirements, office supplies, security, reception, cafeteria, cleaning etc.
There are different legal assessments regarding the nature of such office contracts. While doctrine argues that serviced office or shared office contracts are fall with rental contracts, another approach from doctrine mentions that such contracts deviate from rental contracts due to certain services provided under such contracts addition to lease element. That is to say such contracts are formed with mixed nature since the main purpose of the office user is not only to obtain a workspace but also to be provided services such service of notice, cleaning and reception services.
Disputes arising from such contracts have been carried to court. However, same discrepancy, in particular component court dispute has occurred between the first degree courts.
Commercial Court of First Instance has rejected the court case due to the fact Civil Courts of First Instance are competent courts for resolving the disputes regarding lease contracts [1]. However, Regional Court has underlined that Commercial Courts are competent courts regarding the disputes arising from such office contracts taking into consideration of additional services accompany to rental services and parties alignment under the written firm contract that such contract is not a lease contract [2].
In conclusion, according to the court practices and very recent Regional Court decision if it is explicitly stipulated in the office contract that the contract is not a lease agreement and will not be subject to provisions of rental law, and if additional services are provided together with lease basis, then such contract will be deemed as a commercial contract and will not be resolved under lease law provisions. Therefore, the tenant will not under protection of favorable provisions of lease law. We should mention that the decision of Regional Court has not been examined by Supreme Court yet. Hence the decision of Supreme Court will enlighten the matter without any hesitation.
References:
[1] Istanbul 18th Commercial Court of First Instance’s decision dated 14.6.2019 rendered under File Number: 2019/238, Decision Number: 2019/587,
Istanbul 2nd Commercial Court of First Instance’s decision dated 26.2.2021 rendered under File Number: 2020/523 Decision Number: 2021/137,
Istanbul 2nd Commercial Court of First Instance’s decision dated 28.4.2021 rendered under File Number: 2020/715, Decision Number 2021/297.
[2] Istanbul Regional Court of Justice 17th Civil Chamber’s decision dated 17.02.2022 rendered under File Number: 2021/1546, Decision Number: 2022/184,
Istanbul Regional Court of Justice 17th Civil Chamber’s decision dated 16.02.2023 rendered under File Number: 2023/118, Decision Number: 2023/189 K.
Istanbul Regional Court of Justice 17th Civil Chamber’s decision dated 23.11.2023 rendered under File Number: 2023/1174, Decision Number 2023/1260.