International contracts are vital for countless business transactions, partnerships, and investments. However, when parties from different countries with different legal systems and languages enter into agreements, the need for accurate communication by legal translation becomes crucial.
Legal Terminology Is Not Universal
Unlike general language, legal terminology is based on the social and cultural context of each country and their legal systems. A term in one legal system may not have an exact equivalent in another, and a mistranslation can lead to misinterpretation. For example, terms like “consideration”, “tort,” “commodities” or “acts of God and force majeure” carry specific legal implications in common law systems that differ in civil law systems. A professional legal translator understands these nuances and ensures that the legal meaning is preserved and not lost by a literal wording translation.
Contracts Are Legally Binding Documents
International contracts are legally binding, which means that they are enforceable by law. Therefore, an inaccurate translation can cause a breach of contract, disputes, or even legal action. For example, if a translated clause fails to reflect a party’s obligations correctly, it may result in non-compliance, penalties, or termination of the agreement. In court or arbitration, a poorly translated contract can be challenged and even considered unenforceable.
Risks Of Poor Translations
In Mexico, the Federal Civil Code, particularly Articles 1795, 1812, and 1813, establishes that a contract is invalid if the consent of either party was obtained through a “mistake” (error) affecting their will. The law further defines “dolo” (fraud) in contractual agreements as any deception or trick intended to induce a party into error or to keep them in error. Likewise, “mala fe” (bad faith) is defined as the deliberate concealment of another party’s mistake once it is known.
In cross-border transactions, inaccurate or poor-quality translations can unintentionally (or intentionally) create conditions of fraud or bad faith, leading to misunderstandings about contractual terms, obligations, or rights. Therefore, ensuring precise, professional translation is essential to safeguard consent and avoid rendering the contract invalid under Mexican law.
Clarity Avoids Costly Disputes
Let’s remember, ambiguity is the enemy of contracts and especially of international contracts. A contract that is unclear due to poor translation increases the risk of conflict. Accurate translation ensures that all parties share the same understanding of their rights and duties. This clarity reduces the possibility of disputes and facilitates smoother international collaboration.
Conclusion
Accurate legal translation becomes a necessity in international contracts. Whether entering into a joint venture, sales agreement, or service contract, working with qualified legal translators helps ensure that your contracts are not only linguistically accurate but also legally enforceable. Clear, precise translation protects the parties’ true intent, minimizes the risk of misunderstandings, and prevents situations that could lead to invalidity, fraud, or bad faith.
