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In international trade, you often work with contracts in multiple languages. The risk: translation differences can cause the versions to differ in content. Therefore, include a language clause that specifies which language version takes precedence in the event of discrepancies. This prevents disputes regarding exactly what was agreed upon.
Multilingual contracts have become the norm
Doing business internationally entails multilingual contracts and legal documents. Parties each want to understand a version in their own language. But even within the EU, where languages are formally equivalent, a translation can differ subtly from the original — and it is precisely these nuances that sometimes determine the outcome of a dispute.
The risk of translation differences
No translation is perfect. A legal term in one language does not always carry exactly the same weight in the other. If two language versions of your contract differ on an important point, the question arises as to which version applies — and that is precisely where conflicts arise.
The solution: a language clause
Include a prevailing language clause specifying which language version takes precedence if the versions differ. For example: 'In the event of discrepancies between the Dutch and English versions, the Dutch version prevails.' This makes it clear in advance which text is decisive.
Practical tips
Have translations made by an expert, verify the content of the leading version, and combine the language clause with a choice of law and forum. Ensure that the party not fluent in the leading language nevertheless fully understands the content to prevent later disputes regarding meeting of minds.
Frequently Asked Questions
Which language version of my contract applies?
The version you designate as leading in a language clause. Without such a clause, uncertainty arises regarding differences between the versions.
What is a language clause?
A provision that specifies which language version prevails if the versions differ from each other (prevailing language clause).
How do I avoid translation problems?
With an expert translation, a review of the leading version, and a clear choice of language, law, and forum.
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