A contract is between parties. The governments role is to arbitrate in the case of disputes not to help craft the original document and ensure understanding.
Isn't this a case of "an ounce of prevention is worth a pound of cure"?
Requiring both parties to prove they understand the contract is probably more cost-effective in terms of, well, cost - and time - than it is to actually go on to litigate things.
Perhaps, but it's simply not the way things have been done. For example, I cannot imagine a legal infrastructure that would allow people to understand Terms Of Service. And that is with everyone using their own language.
