In foreign trade the parties operate in different legal systems, and the contract is written to manage this difference. The governing law, the forum for disputes and the payment method are the core of these texts. If these articles become vague in translation, the parties are left without a basis at the time of a dispute.
Sales contracts
The quantity, quality, delivery and payment terms are defined in the contract. The structure of the articles is preserved. The terms are given with their established equivalents.
The governing law clause
Which country's law will apply is determined separately, and its consequences are decisive. The wording is carried over exactly. No interpretation is added.
Forum for dispute resolution
The choice of court or arbitration is written into the contract and is binding. The names of institutions are preserved. The rule sets are carried over.
Arbitration clauses
When arbitration is chosen, the institution, the rule set and the language are stated. All three are carried over. Anything missing makes the clause open to dispute.
Quality and inspection terms
According to which criteria the goods will be accepted is defined. The wording of the criteria is preserved. The values are carried over.
Letter of credit texts
The banks deal in documents, not in goods, and the text contains the list of documents. The list is carried over in full. The set wording is preserved.
Documentary discrepancies
A difference between the documents required in the letter of credit and those presented prevents payment. The descriptions are kept identical. No difference is created.
Documents against payment
The delivery of documents through a bank is a separate method, and its terms are different. The distinction between the terms is preserved. They are not mixed up.
Advance payment and open account
Payment methods distribute the risk differently between the parties. The names of the methods are established. They are translated consistently.
Pro forma invoice
This document, issued before the sale, has the nature of an offer and shows the terms. The type of document is not mixed up. The validity period is carried over.
Commercial invoice
The invoice is the basic document of customs procedures and contains mandatory information. The information is carried over in full. Amounts stay in their own fields.
Export incentive files
Support applications rest on the complete submission of specific documents. The lists of documents are tracked. Anything missing is reported.
Trade fair and marketing support
Some support schemes cover promotional activities, and expenditure documents are required. The document types are preserved. The dates are tracked.
Free zone operations
Free zone activities run on separate documents and have their own terms. The terms are established. The equivalents are fixed.
Sanctions and restrictions screening
Restrictions directed at certain countries and parties may prevent a transaction. The relevant wording is carried over. No assessment is made.
Distributorship and agency
The sales network abroad is set up through contracts, and exclusivity is regulated. Expressions of exclusivity are a critical field. They are carried over exactly.
Chains of correspondence
Commercial correspondence may have evidential value before and after the contract. The chain is preserved. The dates are tracked.
The costliest mistake in this sector
Translating the dispute resolution clause vaguely makes it open to dispute which forum the parties will turn to. Even if the rest of the contract is flawless, the exercise of rights becomes difficult if this clause does not work. The governing law and jurisdiction clauses are matched one to one.