In today’s globalised world, contracts and other legal documents are essential to the international business environment. In fact, when approaching foreign countries and markets, you’ll likely encounter several agreements and contracts along the way. Some may be in your native language, while others may be in a foreign language, native to the target audience.
Consequently, professionally certified translation services are nowadays critical to ensure that all parties thoroughly understand the agreement’s content and terms.
Today, we will discuss the importance and process of contract translation in detail, including the role of professional translators, the steps involved, and the potential challenges you may encounter when translating and certifying your business documents. We also talked to a professional translator from Translation Services 24, who shared their expert insights with us.
What Is Contract Translation?
Contract translation means translating a legal document or agreement from one language to another.
Suppose you’re a Japanese investor partnering with a business in Kenya. If your partner writes the contract in Swahili, which is their native language, you’ll need to translate it into Japanese for your records and understanding.
In many cases, legal contracts are in English for universal understanding. However, translations are handy even when the contract is from a non-English-speaking region or when you wish to read the document directly in your native language to ensure a complete understanding.
Why Are Contract Translation Services Important?
Certified translations for contract translations are instrumental for international business. Here’s why: Unlike non-certified services, certified translations guarantee accuracy and quality, ensuring that the translated contract is legally valid and can be used in court.
To better understand the significance of certified translation services, we spoke with a senior professional translator from TS24, which is the UK’s leading provider of certified document translations. We asked TS24 to share their expertise and insight into the significance of professional translations and explain what challenges businesses face when expanding internationally.
The expert translator from TS24 told us that “certified translations are today a key and essential part of global business. Companies require professional translations to ensure the accuracy of their contracts and other business-related documents. Additionally, often, legal constraints in a foreign country require a business to translate and legalise their documents professionally, and so translation agencies, similarly to international lawyers, are today important partners for a growing number of global organisations.”
We couldn’t agree more with TS24. Legal services alike professional translations go hand-in-hand today within the international business environment. In fact, you can read one of our previous articles here, which talks in detail about the areas where legal services can make a difference to a business.
Legal Terminologies
Consider words like procurement, indemnity, arbitration, or joinder. These are some legal terms you’re likely to find in a contract. However, the average reader may not understand such jargon.
Now imagine having to understand these words in a foreign language with different grammar rules, syntax, and context. Contract translation services bridge this gap for all stakeholders. However, translating legal documents has its challenges. It requires a deep understanding of legal and linguistic nuances and a high level of accuracy to ensure the translated contract accurately reflects the original intent.
Avoiding Mistranslation
Contract translation is not just about understanding the words; it also includes interpretation. For instance, a mistranslation of a term like ‘indemnity’ could lead to a significant financial loss or a breach of contract. Any misinterpretation of a contract could result in legal disputes, financial loss, or breach of contract.
Legal Compliance
Contracts often highlight the obligations of the parties involved. But if one or both parties can’t comprehend the language, how would they follow the clauses?
Non-compliance with the said clauses could lead to legal consequences, such as financial penalties, loss of business opportunities, or damage to the company’s reputation. Legal translation services ensure contract compliance by translating the text into a language better understood by the stakeholders.
Cultural Sensitivity
As a renowned linguist and writer, Anthony Burgess put it, “Translation is not a matter of words only: it is a matter of making intelligible a whole culture.”
Everything from the contract’s language to the negotiation style can vary across cultures. For example, some cultures may perceive direct and assertive language as rude. However, in others, effective communication may be necessary.
Certified translation agencies are not just language experts, they are cultural interpreters. They understand the nuances of different cultures and account for them when translating a contract, ensuring a confident and smooth communication process, free from potential cultural missteps or misunderstandings.
Cost-Efficiency
You may have an in-house employee who speaks the client’s language. But they cannot handle more than the conversational side of things.
The legal stuff is best left to experts. Inaccurate in-house translations by non-legal professionals could cost you more in the long run, especially if it results in re-negotiations or errors.
Legal translation services are not just accurate and compliant, they are also cost and time efficient. Assigned linguists not only speak and understand other languages but are also legal experts. So, their translations are highly accurate and adhere to legal requirements, providing a sense of relief from the potential financial burden of inaccurate translations.
Types of Contract Translation Services
Contract translation services are categorised based on the type of content they translate. Some types include:
Franchise Agreements
A franchise is a business model where the owner of a product or service licenses its use to third-party operators. For example, you may purchase a Subway or McDonald’s franchise. However, you still have to run it according to the franchise agreement. The agreement will include trademarks, business procedures, fees, royalties, and intellectual property information.
If you’re buying an international franchise, you’ll need a legal translation service to help you understand the terms and conditions.
Investment Agreements
These agreements involve investors from different countries. They invest in each other’s businesses, pooling resources to maximise profits. An investment agreement includes many clauses, such as share transfers, shareholder rights, dispute resolution, exit plans, and management structures. Again, a legal translation service helps make communication swift between both parties.
Employee Contracts
Thanks to the possibility of remote work, more companies are hiring international employees as it expands the talent pool.
However, when you hire an employee from another country, you want to ensure they understand the agreement between you and them. For this, it is imperative to hire a legal translation service provider.
Sales Contracts
Due to increasing globalisation and technological advancements, the global export value is over $25 trillion. However, exporting a product isn’t as simple as loading it on a ship and calling it a day. It involves a lot of paperwork, too. When you export to another country, you must follow the country’s laws and ensure the buyer understands the terms of the sales contract.
A certified translators can help draw up contracts in both your and the buyer’s language. Since they’re also well-versed in the legality of sales operations and export laws, they keep you compliant with regulations.
Other Contracts
Besides these contract translation services, there may be some other types.
- Joint Venture: In a joint venture, two or more companies merge to work on a project. Such agreements are common among international businesses. Having a contract in multiple languages keeps all parties on the same page.
- Influencer Agreements: The global influencer marketing market has a value of $24 billion, which indicates the widespread use of influencers. Businesses that want to expand into a new market can collaborate with local influencers to spread the word. Translating these agreements protects both the influencer and the company.
Final Thoughts
Today, the world has become increasingly interconnected. This expansion has brought with it language barriers and cultural differences.
Certified legal translation services should be a part of every international company’s agenda since they facilitate smooth communication, compliance, legal protection, and effective collaboration. More importantly, they mitigate the risk of miscommunication.
