Legal Translations in Cross-Border Transactions: Common Mistakes and How to Avoid Them

Legal translation in international transactions

Cross-border transactions involve multiple jurisdictions, different legal systems, and documents that must be correctly understood by all parties involved. In this context, legal translation in international transactions becomes a critical element for the viability and legal certainty of the deal.
 One of the most frequent mistakes is assuming that a literal translation is sufficient. In practice, this approach often creates legal distortions that affect contractual interpretation and increase the risk of disputes.

Common mistakes in cross-border legal translations

Among the most common mistakes in international legal translations are:

• Translating common law concepts without adapting them to civil law.
  
  
• Using linguistic equivalents without considering their legal scope.
  
  
• Ignoring the legal framework of the destination jurisdiction.
  
  
• Using generic translations for documents with legal effects.
  
  

Terms such as best efforts, representations and warranties, indemnities, material adverse change, or governing law require prior legal analysis, because they do not always have functional equivalents under Mexican law.

Legal risks arising from poor legal translation

A deficient legal translation may lead to:

• Incorrect contractual interpretations.
  
  
• Imbalances between the parties.
  
  
• Unenforceability of certain clauses.
  
  
• Conflicts in enforcement or termination processes.
  
  
• Evidentiary challenges before courts or authorities.
  
  

In international transactions, these risks are amplified, especially when translated documents are used in Mexico without proper legal contextualization.

How to avoid risks in international legal translations

The most effective way to mitigate these risks is to have the legal translation carried out by lawyers with cross-border transaction experience and knowledge of Mexican law. The goal is not to translate words, but to preserve the legal intent of the original document.
 At Bello, Gallardo, Bonequi y García, S.C. ( “bgbg” ), legal translation is part of our comprehensive support in international transactions, ensuring that documents are legally coherent, functional, and aligned with applicable Mexican legislation.