Question

In 1995, France implemented a law making the use of the French language mandatory in certain legal documents. Documents relating to securities offerings, such as prospectuses, for example, must be written in French. So must instruction manuals and warranties for goods and services offered for sale in France. Additionally, all agreements entered into with French state or local authorities, with entities controlled by state or local authorities, and with private entities carrying out a public service (such as providing utilities) must be written in French. What kinds of problems might this law pose for U.S. businesspersons who wish to form contracts with French individuals or business firms?

Answer 1

The law could pose problems for some businesspersons because certain legal terms or phrases in documents governed by U.S. law have no equivalent terms or phrases in the French legal system. Thus, businesspersons who wish their contracts to be subject to, or at least incorporate, certain U.S. law that is not part of French law may have difficulty drafting those principles into the contracts. Even without differences between U.S. and French law, however, the parties may have different understandings of the contractual terms involved. Typically, many phrases in one language are not readily translatable into another.