Language Clauses

A contractual provision which is often overlooked by businesses contracting with one another when one party is based overseas relates to the language clause.

Contracts are often translated into different languages to accommodate the needs and understanding of the contracting parties. In doing so it is important to address the prevailing language that shall be used to bury disputes when contracts are being translated.

Addressing this issue at the outset will avoid doubt about which version is to prevail if the agreement is the subject of litigation or arbitration proceedings.

However, in some countries the local language is specified by law as the prevailing language for agreements subject to the law of that country.

A simple and effective clause along the lines of the following should suffice:

“this agreement is drafted in the English language. If this agreement is translated into any language other than English, the English language text shall prevail”.

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