How Inaccurate Translations May Cause Liabilities & Contract Disputes
Getting accurate translations is a simple step toward protecting your interests and making solid, reliable contracts.
It is interestingly worth noting that one incorrectly translated word will cost you around $71 Million. Yes, you read that right. This may seem unbelievable, but an illustrative case from 1980 has to do with an 18-year-old boy named Willie Ramirez, who was admitted to a hospital in South Florida in a coma. The medical staff was told by Ramirez’s family that he was ‘intoxicado,’ which was the right term to describe that he had ingested poison.
Unfortunately, the translator got confused and misunderstood this to mean “intoxicated,” and the medical team misread him for an overdose. In truth, Ramirez had a brain bleed. The time lost in thinking he was overdosing and not administrating the right treatment made him a quadriplegic.
If the translation was correct, his condition could have been avoided. The family then filed a suit against the hospital and was awarded $71 million in settlement.
Today, legal translation has become a need in an increasingly globalized world. Localization managers need accurate translations for HR policies or compliance documents in order to oversee global contracts.
The Importance of Accurate Legal Translation
Legal translation is an area that is very specific, requiring the utmost precision and expertise because the nature of legal documents is binding and because legal terms can have a variety of specific meanings across different jurisdictions. Even the smallest of errors in contracts, patents, NDAs, and regulatory documents may cause a misinterpretation of legal rights, void contracts, litigation, and financial losses.
Legal translation is bound by the need for exactness. Accuracy in this context makes sure that the original legal content is preserved so that compliance violations can evaded and liability risks can be alleviated. Confidentiality is the other concern. Legal translations, more often than not, consist of sensitive data, and any misinterpretation can cause confidentiality infringements or even put businesses at legal risk.
For example, let us consider a contract originally drafted in English and then translated into Chinese. If the translations remove significant legal nuances, the contract could not be interpreted accurately in a Chinese court of law. This can lead to unpredictable or unjust legal outcomes. Legal translation is not just about a different language. Understanding the law and ensuring clarity is vital in any jurisdiction.
Case Studies: Translation Errors Causing Legal Disputes
Legal mistranslations are not as uncommon as you might think. History is full of scenarios where businesses suffered major blows due to errors in translating legal documents. Let us walk you through 2 examples of these cases where translation errors led to lawsuits, arbitration combats, and financial losses in the real world.
1. Imprecise Translation Led to A Huge Award
The legal battle between Ecuador and Occidental Petroleum is a famous and expensive translation blunder that cost Ecuador nearly $2 billion. Occidental agreed to explore oil near the Amazon, only to have the agreement terminated after a breach, but a tribunal ruled the penalty to be excessive. Later on, Ecuador’s representative reasoned that the poor translations of important legal documents had left the case distorted and led to a substantial payout.
2. The Chinese Financial Report
In 2005, a slip-up in translation caused a stir in Chinese exchange when a journalist’s report about the Chinese Yuan’s forecast was misinterpreted. The report, speculating on currency trends, was misinterpreted to say that the Chinese government had determined to change the value of the Yuan by a specific percentage. The miscommunication led financial markets into panic, and, at that moment, the U.S. Dollar’s value took a dive until experts explained the translation error.
These case studies clearly show how the risks associated with poor legal translation can directly affect the outcome of agreements and legal proceedings.
Common Legal Translation Mistakes and Their Impact
Legal translation errors come in many forms, and even minor mistakes can lead to significant consequences. Below are some of the most common translation mistakes that cause legal disputes, contractual ambiguity, and financial losses.
| Type of Error | Description | Impact |
| Mistranslation of Legal Terms | Legal terms often have specific meanings that don’t easily translate into other languages. For example, “shall” means you must do something, while “may” means you can choose to do it. Misunderstanding these differences can change important parts of a contract. | Misaligned expectations can result in disputes, legal challenges, and unintended obligations that disrupt agreements. |
| Ambiguous Wording | Some legal phrases can mean different things depending on where you are. For instance, “best efforts” means you have to try hard, while “reasonable efforts” means you just need to try. Translators need to explain these differences to avoid confusion. | Failing to address ambiguity can lead to conflicting rulings in courts, inconsistent enforcement, and strained partnerships. |
| Formatting & Currency Errors | Different countries also have their own ways of writing numbers and converting currency. For example, some use commas, while others use decimal points, which can affect how financial numbers in contracts are understood. | Errors can create discrepancies in payment calculations, tax obligations, or interest rates, potentially leading to financial and legal complications. |
| Cultural & Legal Differences | Legal ideas can differ from one place to another. For example, “force majeure” might be understood differently in common law and civil law systems. Translators must consider these differences to make sure the contract is valid. | Misunderstanding jurisdictional variations can render agreements unenforceable or create legal conflicts between parties. |
How to Avoid Legal Translation Pitfalls
Since legal translation is so crucial, it’s really important to follow the best practices to avoid mistakes that can be costly. Here are some tips to make sure your legal document translations are spot on:
Work with Certified Legal Translators
To translate stuff legal material, you need to really understand legal terms, principles, and the differences between legal systems. Teaming up with certified legal translators makes sure your translations are accurate and legally valid. For example, GTS Translation Services focuses on certified legal document translation, providing translations that guarantee accuracy and legality.
Use Bilingual Legal Experts
When it comes to critical legal documents, it’s essential to bring in bilingual legal professionals. They know the ins and outs of both legal systems, which helps keep translated contracts, compliance documents, and court papers effective. GTS has skilled translators who are familiar with different legal systems, making sure the translations accommodate specific legal differences.
Implement a Rigorous Review Process
Having a solid quality control process is crucial for avoiding translation mistakes. Legal teams should conduct multiple rounds of review, including proofreading by legal experts and native speakers. GTS follows a quality management system that meets ISO 17100:2015 standards, making sure all translations are carefully checked before they are delivered.
Ensure Consistency in Multilingual Contracts
In international contracts, defining which language version is legally binding is crucial. Adding a governing language clause can help clear up any issues between different translated versions. GTS offers translation services in over 100 languages, making sure everything stays consistent and accurate across all versions of legal documents.
Final Word
To sum things up, proper legal translation is highly important to avoid contract disputes and legal liability due to mistranslations. It also keeps your agreements clear, fair, and to the point. With just a tiny error, there is a possibility of huge problems, which is why it is important to work with experts who understand the language and the law. This careful approach not only prevents legal issues but also helps your business run smoothly and avoid extra costs.
Getting accurate translations is a simple step toward protecting your interests and making solid, reliable contracts.
