The Agreement Is Executed In Two Languages

Think about how long it usually takes to design and negotiate an English-language business contract for your client – and how much the parties can argue over the inclusion or exclusion of a single word or phrase. In the event that two languages are used and signed by a client, negotiations and issues should address both contractual formats. If the parties sign a contract and it is considered part of their agreement, they should be aware of this; Their ignorance of the foreign language will not be an excuse. What the new regulation says about the language of agreements Before PR 63, where the Indonesian versions and the foreign language version could not be signed simultaneously, it was customary for the agreement to be concluded first in the foreign language. The Indonesian version would then be prepared and signed within an agreed time frame. Through this practical approach, the parties have taken the risk that the validity of the foreign language version (especially where the agreement is governed by Indonesian law) may be challenged between the signature of the language and Indonesian versions. This risk will persist even after the introduction of PR 63. If the parties to an international treaty use different languages, a language clause should be included in the treaty. Even if the parties are the only language to use a particular language, there must be a clause that determines the official version of the document.

The reason for this is simple: if you expect to appear before a Chinese (or foreign) court, the staff of that court will not speak English. You will not read English. Even if they read English, the Rules of Procedure of the General Court require that documents be translated into the national language. If you have already found that the party with whom you are contracting has no assets outside their own country and that facilitation before a court proceeding is faster than arbitration, why would you ever want to have an English-language contract that disrupts these foreign proceedings? The only language that the foreign court will deal with is its own, and contracts that are in several languages will confuse the problem….