ERDEM-NEWSLETTER-2018-metin

262 NEWSLETTER 2018 ing these bilateral agreements playing a significant role in the energy market shall be addressed from a legal perspective. In light of the above data, it is possible to say that the increase of natural gas sales prices by BOTAS, and the fluctuations in currency exchange rates has had a direct impact on bilateral agreements based on natural gas. Adaptation of the Contract Our legal system adopted the principle of pacta sund servanda for the sake of the principle of good faith and legal security. Pursu- ant to the principle of pacta sund servanda, after a contract is duly formed, the parties are obliged to perform their obligations, accord- ingly, irregardless of the changed circumstances 5 . However, changed and aggravated circumstances after the formation of the contract can sometimes be an exception to the principle of pacta sund servanda . In fact, unforeseen developments that parties did not take into account during the formation of the contract may occur, and the subsequent change of state may cause the collapse of the basis of the transaction 6 . For instance, in the event of an undertaking given to deliver a product consistently and at a certain price, it would not be fair and just to expect the obligor to perform its obligation under the same conditions if the value of the money decreases significantly 7 . In such cases, the parties of the agreement in which the circumstances have changed, or have been aggravated, may either agree to adapt the agreement to new circumstances or, if that is not possible, use their right to revoke the contract. However, there are certain conditions for the adaptation of the contract according to the changed circumstances, or the revocation of the contract. Pursuant to Article 138(1) of the TCO entitled “Hardship,” all of the required conditions mentioned, below, must be present in order to justify the adaptation of a contract, or to trigger the right to revoke: 5 Kılıçoğlu, Ahmet M .: Law of Obligations General Provisions, Ankara, 2012, p. 249. 6 Baysal, Başak : Adaptation of the Contact, February, 2009, p. 115. 7 Oğuzman, M. Kemal; Öz, Turgut : Law of Obligations General Provisions V-1, İstanbul, 2014, p. 580.