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Feb 06

Business English, Spanish or Mandarin – Which Language Holds the Most Potential for Today and the Future?

Business English Training Courses, English Language Training, Language Training Courses 1 Comment »

English as the lingua franca we know today is facing challenges that affect its long term stability in the business world. Although many rely on it heavily to communicate across cultures, it may not be long before we say ‘adiós’ or ‘zai jian’ to the dominance of English in business. The need to take Spanish and Mandarin language training courses is increasingly important because of the emerging economies of their native speakers. As businesses look for that competitive edge, they are turning to Spanish speaking markets in North and South America and Mandarin speaking economies in Asia.

Business Meeting 13 track5 i Business English, Spanish or Mandarin – Which Language Holds the Most Potential for Today and the Future?

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¿Hablas español?

English is the modern day lingua franca of business, largely because of its use in the world’s largest economy. Albeit relatively slowly, this linguistic supremacy is in the process of changing. The influence of the Spanish language in the US is one contributing factor to this change. The Hispanic population is the fastest growing market segment in the US and has grown by 60% in just one decade making Hispanic buying power an impressive $1,000 million.

This combined with the level of influence Hispanic culture has on US history and the economy makes the Spanish language a candidate for becoming an international language of business. Some people even assert that the main language spoken in the US in 2060 will in fact be Spanish making it even more critical for many businesses to offer Spanish language training to their employees as they plan their long-term strategies. The predominantly Spanish-speaking and increasingly influential continent sitting just below the US makes the Spanish language even more attractive to global businesses.

One billion Mandarin speakers and counting…

Another main challenge to English as the international language of business is the increasing importance and influence of the Chinese economy. There are approximately one billion Mandarin speakers across the globe making it the largest linguistic group in the world. Recently, China has spread its economic and business interests beyond their geographical borders and, in a world riddled with economic crises, China seems to be coming out on top.

The Chinese are also expanding rapidly into the African continent through government funding for construction and other schemes. Although Chinese workers in Africa are generally housed in compounds away from local populations, their increasing involvement in Africa is likely to influence the cultures and economies there and Mandarin will become even more widespread across the globe. Investing in Mandarin language training courses for your employees can open doors to one of the most powerful countries of the future.

Are we witnessing a critical moment in linguistic history?

Although there are other languages such as Spanish and Mandarin who at times appear to be major contenders for the business lingua franca, there are many who believe that English is here for the long run and that we might even be witnessing a critical moment in linguistic history. Quoted in an article on Resilience Science, linguist David Crystal states ‘This is the first time we actually have a language spoken genuinely globally by every country in the world’.

Despite this viewpoint, perceptive business leaders around the world know that, without a doubt, investing in Spanish language training or Mandarin language training courses will open international doors and help organisations to gain a significant edge in business, especially in these difficult financial times. This edge will undoubtedly benefit your global organisation both today and in the future.

© Communicaid Group Ltd. 2012

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Jan 11

Legal English in Focus: The Language of Contracts – The Language of Legal Correspondence

English Language Training, Language Training Courses, Legal English Training Courses No Comments »

Legal correspondence forms an important part of the day-to-day work of a lawyer, particularly since the advent of the email. It is often assumed that emails are less formal than letters. However, in reality, the required degree of formality will invariably depend on factors such as the relationship of the writer with the recipient, the level of seniority of the recipient and the subject matter of the email.

Anyone working in a legal context in English should be familiar with the key expressions and terminology of Legal English. Here are a few important expressions used in semi-formal legal correspondence.

Business Meeting 12LajosRepasi i1 Legal English in Focus: The Language of Contracts The Language of Legal Correspondence

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Salutation
Where there is no named recipient, the phrase “Dear Sirs” is used. However the phrase “Dear Sir/Madam” is often preferable because it is gender neutral.

Where, on the other hand, the letter is written to a named individual with whom the writer does not have a close relationship and is thus not on first name terms, the appropriate gender specific title must be used. With regard to women, unless the writer knows that the recipient is married (where “Dear Mrs” is used), the appropriate title is “Ms”. Even if you know that the recipient is not married, it is best to avoid the title “Miss” as this tends to be considered too pejorative. The exception would be if the recipient has identified herself as “Miss”, possibly using her maiden name in her professional work, in previous correspondence.

A thorny problem arises where the name of the recipient does not make it clear whether the recipient is a man or a woman. For example if you had to write to a lawyer in Finland called Teppi Jaskalainen and were unsure whether Teppi was the name of a man or a woman, the appropriate solution would be to write the entire name in the salutation e.g. “Dear Teppi Jaskalianen”.

References to Previous Correspondence
There is a great variety of possible phrases that seek to refer to previous correspondence between the writer and the recipient such as:

  • “Further to your email dated 18 November, I am pleased to inform you that our client is willing to accept the proposed amendments to the confidentiality clause.”
  • “Thank you for your email dated 18 November”.
  • “I refer to your email dated 18 December”

Be aware that the second and third sentences are more succinct than the first, which in addition to referring to previous correspondence also seeks to set out the purpose of writing the letter.

Introducing Comments
Where the email sets out numerous comments on a particular clause in an agreement for example, including one of the following sentences that introduces the comments is common:

  • My comments on Clause 7 are as follows:
  • We have the following comments on Clause 7:
  • Our comments on Clause 7 are set out below:

Sending Documentation
When sending documentation by email we use the word “attach” but when we include documents with a letter we write “enclose” instead:

  • Email: “I have attached the draft shareholder agreement.”
  • Letter: “I have enclosed the marked up Schedule 2.”

If the writer expects the recipient to read the document or react in some way (e.g. give his comments), they would write “I attach for your attention”. However, where no action is expected on the part of the recipient, we would merely write “I attach for your information.” This would be appropriate, for example, when sending to a client a new brochure or an update on the law.

Giving Good and Bad News
You can introduce good news by using the common phrases “I am pleased to inform you” or “you will be pleased to hear that” in the following ways:

  • “I am pleased to inform you that Regional Court has rejected the Defendant’s counter-claim.”

The common phrases “I regret to inform you” or simply “unfortunately” introduce bad news:

  • “I regret to inform you that the court fees for lodging a claim at the Regional Court will be 575 Euro from 1 February 2011.”

Closing Remarks
There are several expressions that typically come at the end of a legal letter or email:

  • “Thank you in advance for your assistance in this matter”: This expression is extremely helpful when the writer has made several requests earlier in the letter.
  • “If you have any questions regarding this letter, please do not hesitate to contact me”: This phrase should be inserted when the letter contains advice. The phrase can be made slightly less formal by using the words “please feel free to contact me…”
  • “I hope that this matter will receive your prompt attention”: This phrase is useful when the writer has expressed his concern earlier in the letter that the recipient has failed to do certain things. e.g. pay an invoice. This phrase therefore acts as a reminder for the recipient to remedy the situation

Requesting Future Contact
It is common to end letters with the phrase “I look forward to hearing from you” irrespective of whether the writer expects the recipient to respond in writing or merely telephone him.

Signing Off

There are different ways of signing off depending on the context and relationship to the individual you are writing to.

  • If the letter begins with the salutation “Dear Sir/Madam” the appropriate ending is “Yours faithfully”.
  • If the letter is to a named individual e.g. Dear Mr Peters, then the appropriate ending is “Yours sincerely”.
  • Where the relationship with the recipient is closer, one can end the correspondence with “Kind regards”, “Best regards” or simply “Regards”.

Anyone taking a Legal English training course or looking to improve their Legal English skills can benefit immensely from reading through the key expressions and their use that we highlight in this series about the language of contracts.

© Communicaid Group Ltd. 2012

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Jan 04

Tips for Learning a Foreign Language – Outside the Training Room

English Language Training, Language Training Courses No Comments »

Anyone learning a foreign language should set aside some time for self-study, engagement with the language, immersion, discovery or whatever else you like to call it. What takes place in the formal language learning setting during the allocated times is not enough if you want to make real progress on your language skills. Anyone learning a language and taking a language course needs to allocate time outside the training room to practise and develop the skills learned in the formal setting.

Tips for Learning a Foreign Language - Outside the Training Room

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Practice makes perfect

Although you may not be assigned ‘homework’ between every training session, it’s important that you find the time to review previous lessons and any learning from them. It is only by reviewing your previous sessions in a critical way that you will be able to increase your comprehension and memorisation of new vocabulary and expressions you are learning. In order to memorise vocabulary items so that they can be used spontaneously, research suggests that you have to repeat each item at least 10 times. During training, your trainer will probably use activities that disguise repetition so that the process is not dull, so reviewing the activities you did in the session will help you to further engrain the new vocabulary and expressions into your language repertoire.

A web of language tools at the ready

Exposing yourself to the language you are learning as often as possible is one good way of getting used to its sounds. The internet has a wealth of reading material for all languages, so spend some time searching for the level and content of materials that best suit you. Reading articles and reports can also help you to expand your vocabulary and get used to the way the different structures of the language work.

Language learning can be fun

In addition to podcasts and articles, the internet also offers a wide range of fun activities and games which can help you to develop your language skills while playing something enjoyable. For those learners who have a higher level, there are foreign language radio stations, podcasts and videos. Try not to aim too high as you listen to these programmes as this can quickly demotivate you. Be sure you can understand a large percentage of what you hear so that you can develop your listening skills.

There’s nothing like the real thing

One of the best ways you can improve your language skills is by spending some time in a country where that language is spoken. Experiencing the real use of the language can be a very motivating experience and allows you to experience the language in ‘real’ situations outside the artificial environment of the training room. Having the opportunity to experience the culture of the country where the target language is spoken can give you added reasons for pursuing your training. A love of a language is usually closely associated with the love of a country where that language is spoken. The best way to experience a country and to practise its language at the same time is to stay in a family. This experience is open to all ages and can offer a combination of lessons and social experiences.

Among other benefits, immersion in a target language country can greatly improve your comprehension skills. Understanding the spoken language is vital as it holds the key to being able to participate in meetings, discussions or conversations. If you don’t have the opportunity to go to a target language country, then there are usually foreign language clubs you can join or online language chat forums.

No matter where and how you spend time developing your language skills outside the training room, the key to your success is not to be shy and stay determined. Get involved in as much as you can and don’t be afraid to ‘have a go’. The more you practise what you have learned in your language courses, the more you will develop your skills – leading you to greater confidence and competence in the language you have selected. Don’t let your language learning stop when you leave the training room!

© Communicaid Group Ltd. 2012

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Oct 01

Legal English in Focus: The Language of Contracts – “Subject To” and “Notwithstanding”

English Language Training, Legal English Training Courses No Comments »

There are a large number of words which commonly appear in legal contracts that must be understood in order to effectively interpret and use Legal English. “Subject to” and “notwithstanding” are two expressions that can cause some confusion. A Legal English training course will help you further understand these words to ensure you can write and interpret Legal English as effectively and correctly as possible. Here you will find a brief summary of how to effectively interpret and use these terms.

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The phrases “subject to” has two meanings:

(a) a cross-referencing phrase
(b) a phrase introducing a conditional sentence such as “provided that”

Cross Referencing

The phrases “subject to” and “notwithstanding” are used as a cross-referencing phrases linking a main rule to an exception:

1.  Price

1.1   Subject to Clause 3.2, the price of the products is set out in Schedule 2.

1.2   Notwithstanding Clause 3.1, The Seller is entitled to change the price, by giving the Buyer seven days’ prior written notice.

“Subject to” looks ahead to the exception whereas “notwithstanding” looks back to the main rule. A more plain English synonym for “notwithstanding” is “despite”. The drafter can select either of these phrases depending on where he wishes to place the emphasis.

If the phrase “subject to” were omitted, the meaning of the clause would still be clear. Its purpose, however, is to emphasise the relationship between the main rule (the price set out in the schedule) and the exception whereby the Seller may unilaterally change the price. It’s more important to use these phrases when there is a big gap between the main rule and the exception.

Conditional Sentences

The phrase “subject to” may be used in order to introduce a conditional sentence. For example, by replacing the word “by” in the example given in clause 3.2 above, it would then read as follows:

3.2 The Seller is entitled to change the price subject to giving the Buyer seven days’ prior written notice.

Where “subject to” is used in a contract for cross-referencing purposes, it’s advisable not to use it in conditional sentences as well to ensure clarity.

Anyone taking a Legal English training course or looking to improve their Legal English skills can benefit immensely from reading through the key words and their meanings that we highlight in this series about the language of contracts.

© Communicaid Group Ltd. 2011

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Sep 09

Legal English in Focus: The Language of Contracts – British and American English in Legal Language

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The English used by American lawyers is practically identical to that used by lawyers in Great Britain. However, there are some distinct variations with regard to legal correspondence, legal vocabulary and grammar. Here we have summarised some of the key differences between the two to help you navigate British and American contracts more effectively. A Drafting Contracts in English legal English training course can also help you make the differentiation between the two versions, especially if you are a non-native English speaker.

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Non-native English speaking lawyers often wonder whether the style of English they should adopt is dictated by whether they are writing to British or American lawyers. A native speaker from the United Kingdom would always use British English even when writing to a colleague from the United States and may not be aware of the differences in style in American legal correspondence. It’s therefore unrealistic to expect non-native speakers to be more exacting with their use of English. The most important thing is to choose the style that one is most familiar with and be consistent.

Here are a few examples of variations in British and American English.

Esquire

In the address section of a letter, instead of writing the name of the recipient prefaced by his or her title e.g. Mr John Smith, you will often see the phrase “esquire” after the recipient’s surname. So you may see John Smith Esquire written, or Esq in its abbreviated form.

In British English, the word “esquire” is merely an old fashioned term of respect that can be used whenever the recipient is a man, irrespective of his profession or social status. However, in American English, this word is only used when writing to a lawyer of either gender.

Date

The date of a letter can vary depending on whether it is written in British or American English. In British English, the date in letters is made up of first of the day, followed by the month and then the year like this: 2 January 2011. In contrast, in American English the month appears first followed by the day, a comma and then the year, like this: January 2, 2011.

Salutation

When the name of the recipient is not known, in American English, it’s possible to start a letter with “Gentlemen” or “Ladies and Gentlemen” instead of the typical British English phrase “Dear Sirs or Dear Sir/Madam”.

The punctuation that follows the salutation is different as well. In British English, either a comma or nothing follows the salutation (e.g. Dear Mr Smith,) while in American English, the comma may be replaced by a colon (e.g. Dear Mr Smith:)

Americans usually write Mr., Dr. etc with a full stop at the end.

Signing Off

In British English the signing off phrase is usually “Yours sincerely” (where the letter is written to a named person) whereas in American English it is “Sincerely yours”.

Where the letter or email has not been addressed to a named individual e.g. “Dear Sir or Madam”, the signing off phrase in British and American English is “Yours faithfully” and “Yours truly” respectively.

By considering some of the above variations in British and American Legal English, you can identify potential misunderstandings and differences more effectively. A tailored Drafting Contracts in English legal English training course will help you to understand these and many other differences to help you have the right impact in your legal role.

© Communicaid Group Ltd. 2011

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Aug 20

Legal English in Focus: The Language of Contracts – “Shall”

English Language Training, Legal English Training Courses No Comments »

There are a large number of words which commonly appear in legal contracts that must be understood in order to effectively interpret and use Legal English. A Legal English training course will help you further understand these words and clauses to ensure you can write and interpret Legal English as effectively and correctly as possible. Here we will focus on the word “shall” and how it can be used in Legal English.

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The word “shall” is commonly found in contracts to convey the meaning of an obligation. For example “the Purchaser shall pay the Seller the Purchase Price within seven Working Days from the date of receipt of Goods.”

However, if the word “shall” is used in a particular contract as a verb of obligation certain steps should be taken to ensure clarity and avoid ambiguity.

First of all, “shall” must be avoided in all cases which do not relate to an obligation. “Shall” is commonly misused in the following cases:

(a)   “Seven days’ prior notice.”

The words “shall be entitled” should be replaced by the words “is entitled”. It is confusing to use “shall” in order to introduce a right if “shall” also introduces obligations in the same contract.

(b)   “For the purpose of this clause “Secondary Activities” shall mean any paid activities that the Managing Director undertakes other than his duties under this agreement.”

The words “shall mean” should be replaced by the word “means”.

Where contracts use several words to introduce obligations such as “shall” must” and “is obliged to”, there is a real risk of ambiguity in that there is an implied hierarchy in the obligations according to the word used, whereas the drafter merely wished to vary his language. In order to avoid this risk, it is better to use one verb only.

Anyone taking a Legal English training course or looking to improve their Legal English skills can benefit immensely from reading through the key words and their meanings that we highlight in this series about the language of contracts.

© Communicaid Group Ltd. 2011

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Aug 05

Legal English in Focus: Proofreading Commercial Agreements

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Legal English is a minefield of terms and definitions. By understanding the grammatical rules that underpin these terms, you will be more likely to effectively understand legal documents. Taking a Legal English course is a great way not only to learn about what you should look out for when writing and proofreading legal documents in English, but also to acquire a good grasp of the legal documents you are faced with.

Whilst considerable time is devoted to drafting a commercial agreement, it’s essential that you proofread the document thoroughly to ensure that it does not contain any errors. One technique that can help you effectively proof your documents is called capitalised terms checks.

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Capitalised terms checks are exercises that are carried out when proofreading a commercial agreement in order to ensure that:

  • The body of the agreement does not contain words which are incorrectly written with an initial capital letter, thus giving the impression of being defined terms
  • All defined terms created in the agreement are actually used

Ekmark Law concisely summarises the importance of a capitalised terms check and the consequences if ignored.

On the Lookout for Defined Terms

Modern commercial agreements tend to contain vast quantities of definitions. This could be in reference to the individuals involved in the agreement, such as the “Purchaser” or “Vendor”, or it could be in relation to particular issues that are dealt with in the agreement, such as “Audit” or “Confidential Information”. These terms are generally found in the definitions section. Definitions can also be created specifically for a particular clause.

These definitions are easily identifiable as the first letter of the defined term (or each word in the defined term) is written in capital letters. It is therefore really important that you proofread the agreement to ensure that each word that begins with a capital letter is either a defined term (present in the definitions section or created thereafter) or that it is a proper noun, such as “Germany” or “Alpha Limited”.

Where the agreement contains a big definition section (e.g. a share purchase agreement) consisting of up to twenty pages, this task can be made easier by creating a separate list of the defined terms (whereby one deletes the actual definitions).

Once the definitions list is created, you should always read the agreement slowly and check each word that appears with an initial capital letter. If it is not a word that is normally written with a capital letter, check whether the term is included in the definitions list. If it is in the list, the proof-reader simply needs to tick the word in the agreement. If it is not in the definitions list, you should highlight the word as either a new definition or write the word in lower case.

Have you referenced the defined terms?

The second capitalised terms check that you should always carry out seeks to ensure that all the definitions contained in the definitions section are used at least once in the agreement. Problems may arise if the agreement, e.g. a share purchase agreement, is modelled on a previous transaction and certain specific definitions created for that transaction are not used in the new agreement. In this case, rather than create a bare list of defined terms, it is better to print out the entire definitions section as a defined term might only be used in the definition of another term and might not appear in the body of the agreement. To check this effectively, you should work through the following steps:

  1. Read the agreement
  2. Identify each word that is written with an initial capital letter
  3. Tick off each defined term in the definitions section that corresponds to the word in question

Once this exercise is completed, you may find several redundant defined terms which should then be deleted from the agreement.

Conducting a capitalised terms check can be a tedious process but it is highly important and can significantly enhance document comprehension. Taking a Legal English course can help you to take the right steps in creating a winning and professional legal document.

© Communicaid Group Ltd. 2011

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Aug 03

Business English – A Fleeting Phenomenon?

Business English Training Courses, English Language Training 2 Comments »

Well-respected linguist and author Nicholas Ostler argued in an interview once that Business English is a fleeting phenomenon that will one day die out: “At the moment, English-speaking groups are very much in their ascendancy, but there is only one way to go from ascendancy”. Even English as a language in general is likely to follow the path of Latin, he suggests, marking its place in linguistic history before seeping into the ether. However, this remains a distinctly long-term view.

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While languages such as Mandarin, Arabic and Portuguese are becoming increasingly more powerful, English continues to hold centre stage in international business and has a long way to go before it fades out. Despite this, there are many current challenges to English, and consequently the lingua franca of Business English, which may add weight to the view that English will not remain in its superior position forever?

“Half the world’s languages have fewer than 10,000 speakers”

Recently, there appears to have been greater encouragement from leaders to reaffirm indigenous languages. This comes after years of leaders trying to push for more reliance on internationally important languages such as English. Ostler, who also runs the Foundation for Endangered Languages, points out that half of the world’s languages have fewer than 10,000 speakers and that these populations are continuing to decrease.

There is a fear that some languages will be lost altogether and with that, a part of culture and dignity. Self-determination, pride and practicality motivate such moves and as such, there is a big effort in many regions of the world to transfer these dying languages from one generation to another.

Efforts like these emphasise a fundamental difference between lingua franca languages, such as Business English, and native, mother-tongue languages. Business English, or Globish, is a relatively young language which responds to a global requirement to maximise communication and comprehension in international settings. However, regional languages, including English for native speakers, have much deeper roots.

Regional languages are learnt and absorbed intuitively from birth, whereas lingua francas, like Business English, are learnt consciously at a later stage for a specific purpose. This presents a challenge to Business English because it significantly reduces its chances of survival. Once the need for Business English dies out, so too could the language itself.

“English is spoken by less than 20% of the world’s people, but 68% of the internet’s websites are in English”

How then is English as a mother-tongue affected? A UNESCO study determined that children learn better in their native language than they do in a foreign language. Countries such as Uganda and Madagascar have since returned to educating their children in their mother tongue, not in English or French. With the removal of this initial reliance on English, it’s possible that African and Asian countries might start doing more internal business in their mother tongue, which could reduce the importance of other languages such as English.

UNESCO promotes the view that native languages are important and should be valued and preserved. One clear example in their report highlights a shocking contrast within English language dominance: “English is spoken by less than 20% of the world’s people, but 68% of the internet’s web-pages are in English”.

It seems that after years of colonial rule, countries are reasserting their independent identities. The choice of language used in a setting can, ironically, make statements that speak louder than words. Choosing to embrace native languages over dominant international languages such as Business English can send a message to the world that says ‘we can function without you’.

“80% of the world’s people do not speak English”

For this very reason, native English speakers should not get too comfortable with the idea that their language is spoken by everyone. As Ostler noted, around 80% of the world’s people do not speak English. It is common to go abroad and find locals who do not have a grasp of the language, and nor, necessarily, should they. Although native English speakers may appear to have an advantage in the business world, they are also at risk. In negotiations, for example, a group of foreign colleagues can switch easily into their native language, putting their native English counterparts very much in the dark about what is being discussed.

English is being further challenged by the variations that are taking hold in many parts of the world. Variations, such as Globish, often sound very different from the standard form of English and could possibly become languages in their own right. As language is in a state of constant change there has been a natural evolution away from the Standard English left behind during colonial times.

In Nigeria, there are about 50 million speakers of Nigerian Pidgin English, a language consisting of English words interspersed with phrases from Nigeria’s other 500 languages. Although it is the de facto lingua franca, it holds no official status in the country. Other examples of new vernaculars are Singalese in Singapore and Taglish spoken in the Philippines.

In tomorrow’s world we might see a new language prosper and English might become the language of the past. However, the current dominance of English in social and business environments around the world is unlikely to change in the foreseeable future. For the moment, it appears that the world has found a solution to global communication and Business English thrives. Taking a Business English course can improve your performance in the international business arena and help individuals from all nationalities to learn the specific English that is truly relevant to the professional world.

© Communicaid Group Ltd. 2011

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Jul 29

The Importance of Language Skills in Hospitals

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A recent article in The London Evening Standard revealed the impressive figures of London’s hospital spending on interpreters.  Some hospitals, like The London NHS Trust, spend up to £2.2 million on translators and interpreters per year.  In all, the total sum of spending in London hospitals reaches £15 billion.

If the amount of money invested in interpreters is so important, it is because hospitals must deal with people from different nationalities that do not understand or speak English very well.  Indeed, the UK’s capital city gathers a notable number of communities speaking a mixture of 140 different languages.

Hospital Nurse Jacob Wackerhausen i2 The Importance of Language Skills in Hospitals

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Immigrants may know how to speak English but vocabulary related to the medical field is very specific and lends itself to more miscommunication.  The difference between hospitals and other public institutions is that peoples’ lives are at stake, so misunderstandings can be particularly risky.

It is crucial therefore to pay attention to language in fostering a trustful and comprehensible relationship between medical staff and both patients and family members.  The choice of words used is highly important in order to avoid confusion and to calm and ease families’ minds.

As a result, interpreters are essential in providing real assistance to patients and families.  By speaking the patients’ native language, they can help to create a trustful and calmer atmosphere in the normally stressful situation of hospitalisation.  This is even more important when it comes to announcing bad news as the choice of words is essential in order to relay information without misunderstanding and offer the most effective support to the patient and/or family members.

Hospital administration is also an important factor as patients and families must fill in forms not only regarding social security but also regarding previous illnesses, allergies and medical issues.  Terms must be very specific and technical so immigrants and foreigners might have some difficulties understanding it all and may therefore struggle to complete the forms correctly or completely which can lead to confusion and even medical mistakes.

Developing a strong set of language skills through language training courses can help medical and hospital employees provide better care and support for international patients and improved management of families.  By speaking to their patients in their native language doctors can create a trust that will help them to more effectively deal with their health questions and problems.

Medical staff should not only have access to interpreters but also be able to speak some of the main languages that go through the hospitals in order to reassure the patient and handle the situation in a better way.  From a practical perspective, it can save time and money and also help to decrease the number of interpreters that hospitals pay for. Language training courses can help to make a difference in hospitals and save more lives.

© Communicaid Group Ltd. 2011

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Jul 21

Legal English in Focus: Liquidated Damages Clauses

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Legal English is often full of impenetrable terms that make contracts unnecessarily difficult to understand. The role of a legal contract should be to make the terms and conditions of any agreement clear and transparent rather than confusing. This article forms part of our series on Legal English and will shed light on some of the major terms and clauses found in legal contracts.

One clause you may often come across is the Liquidated Damages Clause, but what exactly is it?

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In a contract involving two parties, a Liquidated Damages Clause is put into place to serve the best interests of each party and to discourage both parties from breaking the rules of the contract. For example, if Party A fails to uphold their side of the agreement, they must pay a fixed and previously agreed upon sum of money to Party B, who has fully adhered to the agreement.

In this case, Party A is known as the ‘defaulting party’ while Party B is called the ‘non-defaulting party’. Both of these terms will occur frequently in a Liquidated Damages Clause. Importantly, this clause does not aim to punish the defaulting party (Party A) but indeed to compensate the non-defaulting party (Party B).

The courts have developed laws whereby they can control the contents of Liquidated Damages Clauses. The basic rule is: the Liquidated Damages Clause can be enforced if the amount of money to be paid has been estimated prior to the start of the contract, and that this estimate reflects as accurately as possible the loss that would be suffered by the non-defaulting party (the individual or group who sticks to the agreement).

It is important that this estimate is indeed genuine as it will remain fixed in the event that the contract is broken, even if the actual loss suffered is worth more. If the non-defaulting party does actually lose more than originally estimated, they will not be able to sue for their full loss because they are bound to the initial. However, if it is proved that the estimated sum of money was not a genuine reflection of the potential loss suffered, then the non-defaulting party will be able to fully sue for their loss. In this case, the clause would then become known as a ‘penalty clause’. To find out more about penalty clauses read an interesting article in The Student Law Journal entitled ‘Commercial Law’.

One of the principal advantages of this clause is that it helps to avoid uncertainty so it’s really important to master it. It makes each party aware of the consequences that might occur if they do not hold their end of the bargain. Mastering the Liquidated Damages Clause however requires an extended knowledge of Legal English. Undertaking a Legal English course will help you to gain a better understanding of the terminology and specific vocabulary used in contracts or legal documents. The skills and knowledge gained in Legal English will improve your confidence and ability to write contracts or legal documents effectively.

According to case law, there is a presumption that it is a penalty when the clause requires a single lump sum to be paid, on the occurrence of several events, some of which may lead to serious damage and other may result in minor damage. Therefore, when drafting a contract in Legal English, it’s essential to distinguish between serious and minor breaches of contract.

Moreover, a clause will held to be a penalty clause if the amount to be paid is “unconscionable and extravagant” compared with the loss that could be suffered as a result of the breach. Courts however will be reluctant to conclude that a clause is a penalty when it has been agreed by commercial parties who are able to protect their interests.

It’s important to emphasise nevertheless that the function of this clause is to fix the amount that must be paid by the defaulting party regardless of the actual loss suffered by the non-defaulting party. This way, if the loss suffered is greater than the amount set out in the clause, the non-defaulting party is not allowed to ignore the clause and sue for the entirety of the loss.

However, if the amount of damages payable under the clause does not constitute a genuine pre-estimate of loss, it will be considered to be a “penalty clause” and will not be enforceable. The aim of a penalty clause is to punish the defaulting party, which is not permitted under English law. Where a clause is found to be a penalty clause, and thus unenforceable, the non-defaulting party can seek to recover his entire loss even if it is more than that provided for in the contract.

The difference between a liquidated damages clause and a penalty clause is based on the intention of the parties when entering into the contract as well as the date on which the parties entered into the agreement rather than the date of the breach. However, what actually happened after the formation of the contract may be important evidence of what could reasonably be expected to be the amount of the loss.

© Communicaid Group Ltd. 2011

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