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How can you balance flexibility and clarity in multilingual contract negotiations?

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Contract negotiations can be challenging enough in one language, but what if you have to deal with multiple languages, cultures, and legal systems? How can you ensure that your contract is clear, flexible, and enforceable across different jurisdictions and contexts? In this article, you will learn some tips and best practices to balance flexibility and clarity in multilingual contract negotiations.

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Hans-Josef Vogel

Partner, ADVANT Beiten

1 Know your counterparts

Before you start negotiating, do some research on your counterparts' background, culture, and expectations. Different countries and regions may have different norms and preferences for contract style, format, length, and detail. For example, some cultures may prefer more general and flexible contracts that rely on trust and relationships, while others may prefer more specific and rigid contracts that spell out every possible scenario and contingency. Knowing your counterparts' preferences can help you avoid misunderstandings and conflicts, and find common ground.

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2 Choose a common language

One of the most important decisions in multilingual contract negotiations is choosing a common language for the contract. Ideally, you should choose a language that both parties are comfortable with and that reflects the main market or jurisdiction of the contract. If you have to use a language that is not your native one, make sure you have a qualified translator or interpreter to help you communicate effectively and accurately. You should also avoid using jargon, slang, idioms, or ambiguous terms that may cause confusion or misinterpretation.

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Hans-Josef Vogel

Partner, ADVANT Beiten
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Beware of false equivalents - this pertains especially to legal language. Often, a translation, while correct, will signify a different underlying legal concept int eh contract language or in the undertanding of your counterpart. Use the term oin the original language to add to the text to calrify what is really meant by a certain term.

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3 Use plain language

Another way to balance flexibility and clarity in multilingual contract negotiations is to use plain language. Plain language is a style of writing that is clear, concise, and easy to understand. It avoids unnecessary words, complex sentences, passive voice, and legal terms that may not have a clear equivalent in other languages. Plain language can help you convey your message and intent more clearly, reduce the risk of errors and disputes, and save time and money on translation and interpretation.

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4 Incorporate flexibility clauses

Flexibility clauses are provisions that allow the parties to modify or adapt the contract in response to changing circumstances or unforeseen events. They can include clauses such as force majeure, hardship, renegotiation, termination, dispute resolution, and choice of law. Flexibility clauses can help you balance flexibility and clarity in multilingual contract negotiations by providing a framework and mechanism for dealing with uncertainty and complexity. However, you should also be careful not to make the contract too vague or ambiguous, and to define the scope and conditions of the flexibility clauses clearly.

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Hans-Josef Vogel

Partner, ADVANT Beiten
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Vague contracts are the worst contracts. A good contract contains ALL provisions for ALL issues that may arise. This is why lawyers are hated sometimes: we need to think of what might happen and how to deal with this situation if it arises. A good lawyer will understand that while one may alert the client to the 1 in 1000 chance, not all risks warrant the same treatment or depth of regulation. While adjustemtnclauses can be very senible, be aware that they can be a fruitful source of disputes, if the parties are not on the same page. Thus, try to be as clear as possible in the prerequisites and the consequences of these clauses.

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5 Use standard templates and tools

One of the challenges of multilingual contract negotiations is ensuring consistency and compatibility across different languages and legal systems. One way to overcome this challenge is to use standard templates and tools that have been tested and validated in different contexts. For example, you can use international contract models, such as the UNIDROIT Principles of International Commercial Contracts or the ICC Model Contracts, that provide a common set of rules and principles for cross-border transactions. You can also use online tools, such as the World Bank's Doing Business database or the Global Legal Information Network, that provide information and resources on different countries' legal systems and regulations.

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Hans-Josef Vogel

Partner, ADVANT Beiten
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Use them as a guide. Never use them without thought and adaption. Blind adherence to forms is a sure way to a non-fitting contract.

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6 Review and verify the contract

The final step in balancing flexibility and clarity in multilingual contract negotiations is to review and verify the contract before signing. You should check that the contract reflects the agreed terms and conditions, that there are no errors or inconsistencies, and that the contract is legally valid and enforceable in the relevant jurisdictions. You should also ensure that the contract is translated and interpreted correctly, and that both parties have a copy of the contract in their preferred language. If possible, you should also consult a legal expert or a cross-cultural consultant to verify the contract and advise you on any potential issues or risks.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you balance flexibility and clarity in multilingual contract negotiations?

1

2

3

4

5

6

7

1 Know your counterparts

2 Choose a common language

3 Use plain language

4 Incorporate flexibility clauses

5 Use standard templates and tools

6 Review and verify the contract

7 Here’s what else to consider

Contract Negotiation

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How can you balance flexibility and clarity in multilingual contract negotiations?

1

2

3

4

5

6

7

1 Know your counterparts

2 Choose a common language

3 Use plain language

4 Incorporate flexibility clauses

5 Use standard templates and tools

6 Review and verify the contract

7 Here’s what else to consider

Contract Negotiation

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