ELEMENTS, TYPES AND CONSEQUENCES OF FRAUD ACCORDING TO OBLIGATION LAW – A COMPARATIVE APPROACH BETWEEN LEGISLATION IN TURKEY AND KOSOVO

One of the key elements of the Law on Obligations is the contract, which represents an obligational relationship between the contracting parties with a focus on promoting obligations. A contract (“contractus”) is defined as the consent of will of two or more parties for the purpose of creating, amending or terminating an obligational relationship. In a significant number of cases, legal transactions are created with the presence of a defect of consent, including fraud, mistake and duress. Fraud is an unlawful act by which the contracting party has been induced to enter into a contract through a wilful mistake by the other party or a third person. According to this clause, the elements relating to fraud are: 1) a fraudulent act; 2) the purpose of fraud; and 3) a causal relationship. Fraud as a defect in consent in concluding contracts can appear in different forms. The main types of fraud are considered to be: 1) fraud by a fraudulent entity; 2) fraud by the manner of the fraudulent act; 3) fraud according to the importance of facts, etc. Furthermore, in this article we will discuss the consequences of fraud according to the Turkish Code of Obligations (TCO) and Law on Obligational Relationships of Kosovo (LORK). In accordance with the TCO and LORK, the deceived party has a right to avoid contact and to compensation for damages.