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From time to time, my clients ask me the same question：I was told that I can only sign an agreement in Chinese language to make sure it’s valid, is that true?The answer is No, you can sign an agreement in any language you like. Generally speaking, all contracts, no matter what language it is drafted in, as long as its content is legitimate, once duly executed, is enforceable in China.But please be noted that, the purpose for signing a contract is not only to bind both parties to make sure they will perform their duty accordingly, but also to record a mutual agreement, which could be used in the courtroom someday to judge who is breaching the contract.According to related PRC laws, in any and all PRC’s courtroom, the only language allowed to be used is Chinese. Which means, though the content of the contract is recognized by the court, but the contract can’t be used directly in the courtroom, unless it’s being translated by someone assigned by the court. Given this provision, I am sure you would prefer to ask a PRC lawyer you trust to prepare a bilingual contract instead of having a contract drafted in foreign language translated by some stranger assigned by the court later.Today’s takeaway: If you are doing business in China and hope to be protected, it’s highly recommended to prepare a bilingual contract and state that Chinese version will prevail where there is any confliction between these two versions.PRC Civil Code Article 465 Any contract established in accordance with the law is protected by the law.Unless otherwise provided for by law, a contract concluded in accordance with the law shall be legally binding only on the parties thereto.《中华人民共和国民法典》第四百六十五条： 依法成立的合同，受法律保护。依法成立的合同，仅对当事人具有法律约束力，但是法律另有规定的除外。Civil Procedure Law of the PRC Article 262 People's Courts trying foreign-related civil lawsuits shall use language or text commonly used in the People's Republic of China. Where a litigant requests for provision of translation, translation may be provided and the expenses shall be borne by the litigant.
《民事诉讼法》第二百六十二条： 人民法院审理涉外民事案件，应当使用中华人民共和国通用的语言、文字。当事人要求提供翻译的，可以提供，费用由当事人承担。Subscribe us for local update 👇