July 13, 2024


Equality opinion

Translating Contracts into Chinese Does Not a China Contract Make

Each individual handful of weeks 1 of our China attorneys will get an English or Spanish or German language deal despatched to us by a person with the following concern: “What would you cost to translate this for China.” We typically react by asking whether they want a straight translation or no matter whether they want us “to make the agreement function for China” as very well. Rather significantly each and every time their reaction is one thing about how they would like us “to resolve any complications you see though translating.”

For the number of who want a straight translation we give them the names of great translation businesses, of which there are several. We also make clear why it does not make sense to fork out lawyer rates for a straight translation.

For those who want us to take care of “any issues although translating, “we explain how that will call for a lot far more than just acquiring 1 of our bilingual attorneys make corrections even though translating. That will involve our legislation agency 1st operate a conflicts verify to be guaranteed we can depict them. Then it will need we get up all facts pertinent to the transaction and talk about the client’s aims similar to the particular China transaction and their targets for China and, in many cases, their plans for the relaxation of the earth as well. We then reveal that we might also have to have to do some legal analysis on China national and regional regulations and discuss with Chinese authorities officials, relying on the nature of their deal.

We also normally demonstrate why we so strongly propose that our clients have us perform simple due diligence on the Chinese party with which they want to deal to make positive the Chinese company essentially exists and is legally authorized to do the small business it suggests it will do beneath the deal. We also want to make certain that our client’s IP is properly shielded/registered in China (and usually in other places) ahead of they do any offer or signal any deal.

We then reveal how when we are introduced in as legal professionals on a transaction, we often see a significantly far better way to construction the transaction for our shopper, and quite often for the Chinese counter-bash as effectively. Other situations, we tell them that the deal they are looking for to do merely cannot function in China or that the deal they have is worthless for China and we will have to have to start around by drafting a new a single. We also normally need to have to offer them with a China NNN Agreement to protect their IP and trade techniques in advance of they reveal everything a lot more to the Chinese corporation with which they are functioning. We also normally demonstrate the worth of liquidated damages for China contracts as a terrific case in point of why we should collect up a complete host of facts before we can even start off drafting a China agreement.

We have to do all of these items mainly because contracts that operate for the United States, Australia, Canada, Germany Spain, Mexico, etcetera., do not get the job done for China and putting individuals contracts into Chinese will not improve that. See Drafting China Contracts That Operate.

Each individual so often the prospective customer will push again and check with a concern or two that reveals they system to transfer forward on their individual, but still want our assist to enhance upon what they have presently completed. I have more than when been questioned if I would “just explain how your law firm chooses the liquidated damages total for your China Agreements” or “how your law firm chooses the jurisdiction for any contract disputes,” and then refer them to a great translator.

I ordinarily answer by explaining the a variety of motives why I cannot answer people questions, which typically centre on the actuality that we are not meant to give lawful advice to any individual who is not a client and how even if we could, we do not know anyplace shut to plenty of about their circumstance to be giving this kind of assistance. I then ship them a listing of translation businesses and would like them the best.

Bottom Line:  Translating a agreement into Chinese does not make it into Chinese deal.