This clause specifies which language the arbitration will be conducted in—typically English, but could be French, German, Spanish, or another language. This matters because if English isn't your first language and the clause requires arbitration in English, you'll need to hire translators and lawyers fluent in English legal terminology, which costs significantly more money. The legal principle is that arbitration rules (like those from the ICC) allow parties to choose the language, but if you don't specify, the arbitrator might choose one that disadvantages you. For example, a non-native English speaker could misunderstand technical contract language during an English-language hearing.
If English isn't your strongest language, insist on arbitration in your native language or negotiate for a professional interpreter to be provided at the other side's cost. If you must accept English, add a clause allowing written submissions in your language with English translations, so you have time to carefully prepare your case rather than thinking on your feet during hearings.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause specifies which language the arbitration will be conducted in—typically English, but could be French, German, Spanish, or another language.
Why should I care about this clause?
This matters because if English isn't your first language and the clause requires arbitration in English, you'll need to hire translators and lawyers fluent in English legal terminology, which costs significantly more money.
What are my options?
The legal principle is that arbitration rules (like those from the ICC) allow parties to choose the language, but if you don't specify, the arbitrator might choose one that disadvantages you.
How does this affect small businesses?
For example, a non-native English speaker could misunderstand technical contract language during an English-language hearing.