Brief Fact Summary. An employee of a corporation signed a contract drafted in a foreign language he did not speak or read.
Synopsis of Rule of Law. A corporation will not be relieved from its contractual obligation if one of its employees signs a contract in a language he does not speak or read.
Issue. Does a sophisticated businessman's signing of a contract in another language that he does not speak or read, relieve his employer of its obligations under the agreement?
Held. No. The court observed, "[w]e find it nothing short of astounding that an individual, purportedly experienced in commercial matters, would sign a contract in a foreign language and expect not to be bound simply because he could not comprehend its terms." Additionally, the court found nothing in the CISG "that might counsel this type of reckless behavior and nothing that signals any retreat from the proposition that parties who sign contracts will be bound by them regardless of whether they have read them or understood them."
The breach of contract claim is governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG) because the United States, where Southeast has its place of business, and U.A.E., where Al Hewar has its place of business, are both States party to the Convention.View Full Point of Law